“In addition to rising demand for foreign currency, the exchange rate may fluctuate as a result of the practice of receiving and disbursing foreign currency for goods and services purchased within the country,” said Deputy Central Bank Governor Win Thaw in a statement issued on Wednesday.
According to Win Thaw, organizations such as hotels, restaurants, souvenir stores, and international schools, as well as ministries’ enterprises and organizations, are currently using the US dollar rather than the kyat.
In an announcement to ministries and local governments, he stated, “The Myanmar kyat should be used for domestic payments, and relevant ministries, regional and state governments should inform your organizations as necessary.”
The directive is the latest in a series of moves by authorities to tighten control over foreign currency flows in the military-run country.
The official kyat exchange rate is now set at 1,850 per dollar, but it has tended to be considerably lower than the unofficial black market rate.
Myanmar’s central bank earlier stated that beginning April 3, foreign exchange earned locally must be deposited at licensed banks and exchanged for kyat within one working day. The move caused protests from residents and foreign business organizations, and the central bank later excluded foreign entities from the rule.
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