Xinhua, Yangon :
The Central Bank of Myanmar (CBM) is encouraging private banks to be more active in foreign exchange business for the development of the country’s financial market, official media reported Tuesday.
Vice-Governor of the CBM Daw Khin Saw Oo told the parliament that private banks, which have authorized foreign exchange dealers licenses, can lend foreign currency under law to those residing in the country.
She encouraged the private banks to increase their foreign exchange capital, accepting saving made by depositors and borrowing foreign currency from local and foreign financial markets.
She urged the private banks to keep enough foreign exchange saving at their banks for lending to ensure development of the financial market.
She disclosed that rules and regulations of Foreign Exchange Law will also be released soon for bankers to abide by. Myanmar started to introduce managed float exchange system in April 2012 after decades-long application of complex dual exchange rate-the official rate and the market rate until April 2012 when it was unified into market rate.
To eliminate illegal foreign exchange trading, 14 private banks have been granted as authorized dealers from Oct. 2011 to July 2013 to enable official trade of three kinds of foreign currencies-U.S. dollar, Singapore dollar and euro at a rate designated in line with daily exchange rate transacting in the international exchange market.
