The junta-controlled Central Bank of Myanmar announced that Myanmar citizens abroad can transfer their earnings through Authorized Dealer Licenses (AD Banks) and use them as desired.
Daw Than Than Swe, the newly appointed chairman of the Central Bank by the military council, issued the order by exercising the authority conferred by Section 49 Sub-section (b) of the Foreign Exchange Management Law.
The statement states that Myanmar citizens abroad are free to use their currencies for themselves, transfer them to others, and sell them to banks.
A financial analyst said that since the official currency transfer rate is only 2,100 kyats per dollar, citizens abroad will only use other ways with higher exchange rates, and the announcement of the Central Bank of the military council will not work.
The Junta-controlled Central Bank has made it clear that individuals and businesses who have acquired the currency of overseas residents are not permitted to resell it.
The order will take effect on September 1 and stipulates that foreign currency sales to AD licensed banks must be completed within 21 days of the date of income receipt.
The Internal Revenue Department has given incentives that the money legally transferred from abroad will be exempt if it is used for the purchase of vehicles and basic stuff, construction, and investment.
During the 19 months of the military coup, the central bank increased the exchange rate from 1,850 kyats to 2,100 kyats, but it rose to a record high of over 4,000 kyats per dollar in the black market.
