AFTER the Central Bank of Myanmar vowed an intensified crackdown on those involved in gold and currency market manipulation, the kyat-US dollar exchange rate slowed down in the forex market.
Kyat depreciated at K3,890 against the US dollar on 30 March, and then, the exchange rate dipped to K3,850 on 5 April.
CBM initiated an online trading market in which exporters and importers and private banks are engaged, with a view to developing the foreign currency exchange market and stopping price manipulation. The market exchange rates are officially announced on the online trading platform of the foreign exchange market. Additionally, CBM lets the authorized money changers sell foreign currency as petty cash to those studying abroad, going on a pilgrimage and working abroad, according to the CBM’s notification.
The CBM declared the daily market exchange rates on its official website and the Central Bank of Myanmar Facebook page.
Moreover, the surprise visits are being undertaken at money changers to ensure they abide by the directive issued by the Foreign Exchange Management Law.
Some unscrupulous individuals are attempting to manipulate the market by spreading misinformation from the verbal deal or sparking public concerns with malicious news about the volatile exchange rate. Some are also engaged in transactions without a valid licence, violating the existing laws.
They will face legal action under the Foreign Exchange Management Law. The CBM also informs the people of true information and data released by the departments concerned and authorized money changers.
CBM always states that it is crucial to dispel false news. Upon tips off, the authorities inspect the price speculators, and legal proceedings against them are officially declared, according to the notification released on 30 March.
CBM has been working together with law enforcement agencies to inspect and prosecute those involved in foreign exchange market manipulation, as per its notification released on 15 March.
Kyat weakened to K4,000 against the US dollar at the over-the-counter market on 19 August 2023.
Under Section 9 of the Foreign Exchange Management Law, only those entities holding foreign exchange dealer licences are allowed to deal in foreign currency and traveller’s cheques. Those holding foreign currencies without valid licences and permits will face legal actions under the law, according to the CBM’s notification released on 21 August 2023.
Notification 7/2014 dated 30 September 2014 issued by the Central Bank of Myanmar affirmingly stated that under stanza 15 of the Foreign Exchange Management Law, domestic residents are allowed to keep US$10,000 in maximum or equivalent amount of foreign currencies for six months. If those foreign currencies that have been unused for over six months have to be exchanged in local currency at the market price through authorized dealers or deposited into bank accounts.
Those illegally holding foreign currencies are to face legal actions under the Foreign Exchange Management Law, the CBM warned again.
Source: The Global New Light of Myanmar