Banking Sector: CBM Governor receives Indian ambassador

Governor of the Central Bank of Myanmar, Dr. Khin Naing Oo, received the visiting delegation led by Mr. Abhay Thakur, Ambassador of India to Myanmar, at the meeting hall of the Central Bank of Myanmar in Nay Pyi Taw on September 28.

During the meeting, the Indian Ambassador to Myanmar stated that regarding the draft Bilateral Currency Swap Arrangement currently being prepared between the Central Bank of Myanmar and the Reserve Bank of India, the revised draft provides not only for Myanmar banks to open Indian Rupee accounts in Indian banks, but also for Indian banks to open Myanmar Kyat accounts in domestic Myanmar banks.

He emphasized that under the Currency Swap Arrangement, establishing mutual account relationships of foreign correspondent banks opening accounts in domestic banks (Vostro Accounts) and domestic banks opening accounts in foreign correspondent banks (Nostro Accounts)—is important as it will make bilateral trade easier and faster.

The Governor of the Central Bank of Myanmar stated that regarding the Currency Swap Arrangement, they are currently scrutinizing the terms and conditions to proceed further, and that prioritizing the use of local currencies in bilateral trade is being carried out.

She added that the Central Bank of Myanmar is working to open a Rupee Nostro Account at Punjab National Bank, while Punjab National Bank of India is arranging to open a Myanmar Kyat account at domestic Myanmar banks. Furthermore, to enable the use of all three currencies—Indian Rupee, Myanmar Kyat, and Russian Ruble—they are also collaborating with Russia-based Sberbank (India Branch).They then engaged in a warm and open discussion regarding the draft Bilateral Currency Swap Arrangement.