AFP, Yangon :
Myanmar businesses ranging from restaurants to golf clubs have until the end of next month to stop charging in US dollars, the central bank announced in a snap move to stabilise the kyat currency.
Banks and official moneychangers will still be allowed to exchange dollars for the local currency but a host of firms, many in the service sector, will have to return their permits.
The special licences enabling firms to convert the US currency will be revoked to combat “dollarisation”, the Central Bank of Myanmar said in a statement.
“Because of payments and sales in dollars, there has been dollarisation leading to an increased need for dollars, weakening the ‘Kyat’ and causing exchange rate instability,” it said.
The kyat has lost around 20 percent of its value against the dollar in the last six months. The official rate Monday was 1,283 to the dollar.
Myanmar businesses ranging from restaurants to golf clubs have until the end of next month to stop charging in US dollars, the central bank announced in a snap move to stabilise the kyat currency.
Banks and official moneychangers will still be allowed to exchange dollars for the local currency but a host of firms, many in the service sector, will have to return their permits.
The special licences enabling firms to convert the US currency will be revoked to combat “dollarisation”, the Central Bank of Myanmar said in a statement.
“Because of payments and sales in dollars, there has been dollarisation leading to an increased need for dollars, weakening the ‘Kyat’ and causing exchange rate instability,” it said.
The kyat has lost around 20 percent of its value against the dollar in the last six months. The official rate Monday was 1,283 to the dollar.
