Yuan-Kyat direct payment: CBM clarified direct-use of Yuan-Kyat payment

A press conference on the direct-use of Yuan-Kyat payment in China- Myanmar border trade was held at the Mingala Hall of the Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry-UMFCCI in Yangon on Friday in line with COVID-19 prevention protocols.

During the conference, Deputy-Governor of the Central Bank of Myanmar Daw Than Than Swe delivered the opening speech. The meeting was attended by the chairman of the working committee on ensuring the smooth flow of Trade and Goods U Nyunt Aung, join- secretary major general Yan Naung Soe, Chairman of UMFCCI, U Zaw Min Win, entrepreneurs and other officials.

Vice chairperson , Central Bank of Myanmar, DawThanThanSwe said “I want to reduce US dollar exchange rate volatile and want to speed up trade between the two countries and also cash payment system. We allow the two Chinese banks that are given license by the Central Bank of Myanmar as settlement banks. If we can implement this, Myanmar will hold all the aces in trading according to Yuan and then we want more use in local currency. The traders take responsibility the risk of US dollars .Yuan kyat already used in the previous but traders make the nonresident bank account at the borders.”

Industrial and commercial bank of China (ICBC) and bank of China( BOC) that are recognized Yuan settlement banks by the Central Bank of China.

Vice chairman, UMFCCI, Ye Min Aung said “We use 300 million dollars for rice exporting via borders per year. If the exchange rate is not stable we will use 300 million dollar, we face many challenges. We carry out not only imports but also exports. Whatever using Yuan and Kyats, it will become good condition for the private sector. Dollar exchange rate unstable affect on our business. If we can open Yuan account that will become good condition for us but we need trading practices to exercise that system.”

Member, Rubber processing and production organization, Han Htun Zaw said “I greatly welcome this direct use of Yuan-Kyat payment.75% of rubber production were exported to China. Currently, We sell rubber to China with Renminbi and we go forward via Hong Kong, Singapore and US dollar. Later, we have difficulties in transportation and also currency exchange step by step. If we can use direct payment in normal trade, it will be better and useful for the rubber farmers.”

The banking system  will come into effect on 1st January 2022.