Central Bank orders: Payments in Myanmar must be made in Kyat

The Central Bank of Myanmar has ordered ministries, region/ state governments, and the city development committee of Nay Pyi Taw, Yangon, and Mandalay, to make payments in Kyats.

The statement said payments in foreign currency in the country have led to widespread use of the foreign currency, increasing demand for foreign currency and volatility in the exchange rate.

Therefore, ministries, region and state governments are required to pay in kyats for the purchase and sale of goods and services within their subordinate organizations, affiliated government and private entities, and organizations.

According to the Notification No. 12/2022 issued by the Central Bank, foreign exchange earnings of the residents must be sent back to Myanmar to a foreign currency account at Foreign Exchange Authorized Dealers (AD) banks and must be exchanged to Kyats within one working day.

The statement also said that payments at the hotels, restaurants, international schools, accommodation for foreigners and souvenir shops in the country are made in US dollars, instead of Kyat.

In addition, organizations under the ministries are also accepting payment for land rental, capital investment for the insurance business, and receipts from joint ventures in foreign exchange.

The statement also ordered the respective ministries, region/state governments, and city development committees of Nay Pyi Taw, Yangon, and Mandalay, to report the further instructions to their subordinate organizations to the central bank.