The Central Bank of Myanmar will no longer fix foreign currency exchange rates and will start introducing an interbank market rate in late 2017 (Ministry of Planning and Finance)

The Central Bank of Myanmar will no longer fix foreign currency exchange rates and will start introducing an interbank market rate in late 2017, according to Dr Sandar Oo, the managing director of the Ministry of Planning and Finance, at the Myanmar Investment Forum 2017 held at the MICC-2 in Nay Pyi Taw. 

“The central bank creates the daily auction system. It is just one-sided trading. The central bank serves as a seller. It will ditch the daily auction and implement an interbank system. There will be no big difference between the auction rate and the market price. We are working with the International Monetary Fund to implement it at the end of this year.”

Set Aung, the vice-governor of the central bank, said in late February: “Currently, we are working on reference exchange rates via the auction system. In an attempt to equalise the exchange rates between the government’s official exchange rate of Ks6 per dollar and the outside market, the government turned to the multiple exchange rate system with the technical assistance of International Monetary Fund. Now we are ready to launch an interbank market rate.”

Kyaw Win, the minister for planning and finance, said: “The central bank and private banks need to co-operate work in accord with the law and regulations.”

The central bank is scrutinising the financial strength of private banks in accordance with regulations.

(Eleven Media Group: http://elevenmyanmar.com/business/9906)

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