The Central Bank of Myanmar was established under the Central Bank
of Myanmar Law 1990 and empower Independent operation, to exercise supervision and regulatory authority over financial institutions of both state and privately owned to set reserve requirements for the nation, prescribing discount rate interest rates on loan and deposits, minimum cash margin, ratios of Asset and Liabilities including provisions governing relations of the Central Bank with the government, measures and procedures to formulate and implement monetar policy, exchange rate policy eusol of Foreign Exchange transaction and power of Board of Dissectors to ensure the effective performance of the Central sp; The Central Bank is responsible to conserve the available Foreign Exchange reserve of the country with the instructions from Ministry of Finance Exchange management is administered by the controller of Foreign Exchange of the Exchange management Dept of the Central Bank of Myanmar and the Exchange Management Board.
All external payments are subject to authorization, receipt of all export proceeds and invisible use to be declared to Myanmar Foreign Trade Bank.
Calculation is pegged to SDR at Ks 9.5084 equal to 1 SDR. 2 % margin applied in respect of spot transactions based on fixed SDR-kyat rate.
Buying and selling rates of Deutsche Mar French Frances, Japanese Yen, Pound Sterling, Swiss Franc and United States Dollars Quoted by Myanmar Foreign Trade Bank are determined on the daily calculate of these currencies against the SDR.
As for other currencies, calculated on appropriate cross rate in different money markets.
These are no taxes or subsidies changed on purchases and sales of foreign exchange.
Foreign Exchange Certificates were issued by the Central Bank on 1993, for the convenient of tourist and to enhance foreign Exchange earning. FEC car be used by both resident and non-resident alike for any type of payment within Union of Myanmar., the value of which equal to United States Dollars and it is exchangeable with USD. Pound Sterling and acceptable travelers cheques and credit eases.
Myanmar residents who owned foreign currencies can exchange their foreign currency with Foreign Exchange certificate and they can open foreign currency account with a minimum deposit of 100 FECs at Myanmar Foreign Trade Bank or at Myanmar Investment and Commercial Bank. The organizations which are authorized to obtain FEC from the Causal Bank are state owned commercial banks and Hotels. Which hold FEC changes license, the individuals holding FEC changes license can exchange FEC with Foreign currency.
With effect from 24.4.93. Foreignness and non residents can bring foreign currency not in excess USD 2,000 or its equivalent without declassing to the cash on arrival.