WSG Article: Central Bank of Myanmar Exempt Foreign Companies From Mandatory Forex Conversion

Central Bank of Myanmar Exempt Foreign Companies From Mandatory Forex Conversion

January, 2023 - Ramandeep Singh Bhamra

On 30 December 2022, the Central Bank of Myanmar issued letter No. FE-1/2861(Ka) concerning the Foreign Exchange Supervisory Committee Meeting Resolution No. (78/2022). The most pressing issue faced by foreign companies in Myanmar was resolved by the decisions made in paragraphs 1(d) of the meeting resolution no. 78/2022.

Meeting resolution Paragraph 1 (d) states that foreign currencies of companies with more than 35% of foreign shareholding do not need to be mandatorily converted into Myanmar Kyat. Such foreign companies can use foreign currency for internal use and sell them to banks. However, foreign companies must seek prior approval from the Foreign Exchange Supervisory Committee if they wish to use foreign currency for outward remittances for non-trading purposes.

Meeting resolution Paragraph 1 (r) states that companies with more than 35% foreign ownership are not allowed to trade and export non-value-added agricultural products. The trading companies permitted to export agricultural products must continue utilising 65% of their export earnings per CBM’s notification number 36 of 2022.

The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.