Deputy Governor of the Central Bank of Myanmar Daw Than Than Swe, Secretary of the Central Committee for Ensuring the Smooth Flow of Trade and Goods and officials discussed the expansion of Yuan/Kyat and Baht/Kyat usage in Myanmar-China and Myanmar-Thailand border trade, yesterday in Nay Pyi Taw.
Myanma Economic Bank, local private banks and Thai banks such as Siam Commercial Bank, Bangkok Bank, and Kasikorn Bank started the use of local currencies, Yuan/Kyat/Baht in Myanmar-China and Myanmar-Thailand border trade. The use of Baht/Kyat started in Myawady and Tachilek.
The meeting focused on the expansion of the use of Baht/Kyat in Myeik and Kawthoung and the use of Yuan/Kyat in Chinshwehaw.
The meeting discussed the establishment of a ground task force to work with state governments, local traders, Ministry of Commerce, Customs Department and banks and implement standard of procedures and banking agreement fast in order to start the work in the first and second week of July. In addition, they also discussed plans for Myanmar banks to accept remittances of Myanmar workers in Thai Baht through Thai banks in Thailand and issue them to their parents and relatives in Myanmar.
Under the collaboration of the Central Bank of Myanmar, the Ministry of Commerce, Ministry of Planning and Finance, and the Central Committee, the expansion of regional trade through the use of Yuan/Kyat/ and Baht/Kyat and the reduction of exchange rate risks have been carried out since the 2021-2022 FY.
Within the Yuan/Kyat pilot period, from January 2022 to the third week of June 2022, export revenue was Yuan 197.464 million, import payment was Yuan 77.699 million, making the surplus Yuan 119.765 million.
Within the Baht/Kyat pilot period, from March 2022 to the third week of June 2022, export revenue was Baht 1,540.46 million, import payment Baht 1,137.95 million, making the surplus Baht 402.51 million. In addition, permission was granted for worker remittance, and revenue as of third week of June 2022, was 29.548 million Baht.
The Payment Mechanism implemented by foreign banks was discussed several times by the Central Bank of Myanmar, and issues related to Baht/Kyat and Yuan/Kyat payments are coordinated by the relevant Bank of Thailand, Chinese banks, and Thai banks. Liquidity Support, Trade Financing and Settlement Time were clearly defined to convert trade surplus, and agreements were signed.—MNA