The Central Bank of Myanmar (CBM) has ordered state ministries and local authorities not to use foreign currencies in domestic transactions, Reuters reports.
Central Bank Deputy Governor Win Thaw said private business schools and state ministries continued to hold and transact in US dollars instead of Myanmar kyat.
“In addition to the growing demand for foreign currency, the exchange rate may fluctuate due to the practice of receiving and disbursing foreign currency for goods and services purchased domestically,” he added in a statement. communicated.
Since the military coup, Myanmar’s kyat exchange rate has fluctuated as the country’s economy faced problems following the military coup.
The CBM has set an artificially low exchange rate of 1,850 Myanmar kyats to 1 US dollar, with the real, or black market, rate being significantly higher.
The junta’s order comes nearly two months after authorities ordered that all funds in foreign currency accounts held by Burmese citizens be transferred to kyat accounts.
Exceptions were reportedly made to foreign business and investor accounts and foreign embassy accounts, following an outcry apparently led by the Japanese embassy, representing a country with significant investments in the country.