The Myanmar Government on March 20 announced the abolishment of the double currency system as part of the Southeast Asian country’s economic reform efforts.
Speaking at a Myanmar Union Parliament meeting, Finance Minister Win Shein stated that the country will retain only its local currency, Kyat, and annul the Foreign Exchange Certificate (FEC), with a total value of over 30 million USD.
The plan will be jointly carried out by the Central Bank of Myanmar, Government-owned banks, private banks and some relevant financial organisations, said Win Shein, who declined to give the time when the new currency mechanism is applied.
FEC, which are circulated in place of US dollar in Myanmar market, were first introduced in 1993 as a means of keeping foreign currency under government control.
Currently, Myanmar's official foreign exchange rate against FEC is between 878 and 888 Kyats per FEC.
Myanmar began its managed floating currency mechanism in April 2012 to attract foreign investment.
The US and Western countries have gradually removed sanctions on Myanmar since its civilian government took over in 2011 and has made positive reforms.-VNA
Speaking at a Myanmar Union Parliament meeting, Finance Minister Win Shein stated that the country will retain only its local currency, Kyat, and annul the Foreign Exchange Certificate (FEC), with a total value of over 30 million USD.
The plan will be jointly carried out by the Central Bank of Myanmar, Government-owned banks, private banks and some relevant financial organisations, said Win Shein, who declined to give the time when the new currency mechanism is applied.
FEC, which are circulated in place of US dollar in Myanmar market, were first introduced in 1993 as a means of keeping foreign currency under government control.
Currently, Myanmar's official foreign exchange rate against FEC is between 878 and 888 Kyats per FEC.
Myanmar began its managed floating currency mechanism in April 2012 to attract foreign investment.
The US and Western countries have gradually removed sanctions on Myanmar since its civilian government took over in 2011 and has made positive reforms.-VNA
