The Central Bank had been under the control of the Finance and Revenue Ministry for over 50 years. Experts claim the law is the first step in reviving Myanmar’s financial policy.

“The plan to design the Central Bank as an individual and independent organization has been debated for such a long time. We can now realize this plan right after the law has officially been set. The new law gives the Central Bank more authority to perform than the former one in steering the financial market,” said Than Lwin, Vice Chairman (Retired) of the Central Bank of Myanmar.

He added that the Central Bank would now be able to get to grips with the financial market in order to solve the current financial problems and tackle the obstacles of the nation’s financial development by being an independent organization and applying financial policy as a whole.

“Foreign currency exchange rate is increasing. The Central Bank could fix a proper exchange rate. It will also be able to build up an expanded foreign currency market. The bank will also have to play the bank interest instead of fixed interest rates”, said Than Lwin.

A Central Bank officer told foreign media that according to the new law, five external experts would be added tothe Board of the Central Bank to work onfinancial policy.

For years, experts in Myanmar and external observers consistently highlighted the problem of having the Myanmar Central Bank under the constraints of the Ministry of Finance and Revenue. They claim this was theprimary reason for the collapsed monetary system and Myanmar’s massive economic downturn.

Experts have advised that the Central Bank should exist as an independent body that can perform checks and balances.

The old Central Bank Law was promulgated in 1990 whilst the country was still under the previous military regime.