CBM permits yen and yuan transactions

CBM permits yen and yuan transactions

The Central Bank of Myanmar (CBM) officially introduced Japanese yen and Chinese yuan as settlement options for banks in cross border payments and transfers.
With the aim of facilitating border trade, the CBM’s January 30 directive permits banks with Authorised Dealer licenses for foreign exchange to open yen and yuan accounts and settle trades in those currencies. However, opening personal accounts or legal entities in the two foreign currencies are not permitted.
“The objective is for easy settlement when conducting border trades. Local banks can also make transfers among themselves,” said U Pe Myint, senior adviser to CB Bank.
He added that “as China and Japan are strong economies, opening personal accounts in yen and yuan should also have been allowed. However, I think the CBM will allow this in future.”

Source: Myanmar Times

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