Myanmar's central bank has ordered borrowers with foreign denominated loans to suspend repaying them to conserve reserves of foreign currency.

The central bank deputy governor, Win Thaw, gave the order on Wednesday 13 July, saying that domestic borrowers who have loans from abroad must suspend payments of the loans and interest payments. He said they would have to renegotiate their repayment schedules with the foreign lenders.

According to Bloomberg, companies in Myanmar have at least US$1.2 billion (S$1.7 billion) in outstanding US dollar-denominated loans.

The central bank also changed rules relating to currency conversion.

In April all businesses were ordered to convert any foreign currency into Myanmar kyats at the official rate within 24 hours of receiving the currency. But, businesses in special economic zones and companies more than 10 per cent foreign-owned were exempt from the order.

This week companies more than 10 per cent foreign-owned had the exemption removed. They will now also have to convert any foreign currency received into kyats within 24 hours.

These are not the only moves the authorities have made to help shore up the country's dwindling foreign reserves.

The junta has already banned the import of cars and what it refers to as non-essential goods.

According to the Straits Times car maker Suzuki had to suspend production in its two Myanmar factories because it could not import the necessary materials to continue production.

The kyat has lost about 60 per cent of its value since the coup. On the black market, one US dollar buys 2,200 kyats, but the official exchange rate which all businesses have to use is 1,850 kyats to the dollar, about 16 per cent less.

According to World Bank estimates Myanmar's economy shrank by 18 per cent in the year ended in September 2021 and it expects the economy to stagnate this year.