Nyi Nyi ®
The Central Bank of Myanmar is urging government organisations to only use kyat payments to reduce US dollar demand and prevent dollarisation of the economy.
The Foreign Exchange Management Department of the bank last week announced that the kyat only should be used in domestic payments at national, regional and state-level organisations, theMyanmar Times reported on Wednesday.
“Using foreign currencies in local industry makes exchange rates instable and impacts the country’s currency,” the circular said.
The document aiming to prevent widespread government use of the dollar was one of several measures put out by the central bank on May 29. A separate document also limited US dollar withdrawals from a domestic bank account to US$10,000 a week for all people or institutions except for a few bodies such as international NGOs, embassies and United Nations organisations.