CBM Plans to Expand Use of Thai Baht and Chinese Yuan
Central Bank of Myanmar Ministry of Economy and Commerce; In cooperation with the Ministry of Planning and Finance, to speed up the flow of trade and goods; To expand regional trade by using yuan / kyat and baht / kyat; These funds will be used from the fiscal year 2021-2022 to reduce exchange rate risks.
Now the baht / kyat; Discussions are underway to increase the yuan / kyat increase. The use of Thai baht / kyat, which started in Tachileik, has increased. It is reported that Nasaka organizations are negotiating to expand in Kawthaung and Yuan / Kyat in Chin Shwe Haw.
Deputy Governor of the Central Bank of Myanmar; Secretary of the Central Committee for Acceleration of Trade and Goods; Joint Secretary Departmental officials; Myanma Economic Bank Local private banks and Thai banks such as Siam Commercial Bank; Bangkok Bank Kasikorn Bank trades in local currencies such as Yuan / Kyat, Myanmar-China and Myanmar-Thailand border trade. To be able to use baht / kyat and make the banking system more usable; It is learned that discussions were held to expand further.
The expansion of the baht and yuan will begin in the first and second weeks of July. Customs Department In addition to the Ministry of Economy and Commerce, local traders; Establish a ground task force to work with state governments to establish Standard of Procedures; It is learned that discussions are underway to prepare accounts for the speedy implementation of banking agreements.
In addition, Burmese workers in Thailand discussed plans to accept remittances in Thai Baht through Thai banks and repay them to their parents and relatives.
RMB / Kyat Pilot Period From January 2022 to the third week of June 2022, export earnings (197.464 million yuan) and import payments (77.699 million yuan); The surplus was 119.765 million yuan, and the Thai baht / kyat for the pilot period from March 2022 to the third week of June 2022 was 1,540.46 million baht, export revenue was 1,137.95 million baht and import payment was 402.51 baht. As of the third week of June 2022, the revenue was 29.548 million baht, according to the relevant departments.
Designated banks that allow direct use of the yuan / kyat in the Sino-Burmese border and direct payments in baht and kyat in the Thai-Burmese border are allowed to open a list of importers and exporters for cross-border trade.
Central Committee for Acceleration of Trade and Goods; The Central Bank of the Republic of the Union of Myanmar The Payment Mechanism implemented with foreign banks was discussed several times by the Central Bank of Myanmar. RMB / kyat issues are handled by the relevant Central Bank of Thailand; Chinese banks; Convertible from trade surplus in consultation with Thai banks; Liquidity Support; Trade Financing and Settlement Time were clearly defined and agreements were signed.
The Indian rupee has also signed an agreement to use the rupee at the border after making direct payments in yuan / kyat and baht / kyat.