The Central Bank of Myanmar organized a briefing on the rupee and kyat trade settlement mechanism to start rupee/kyat direct payment using the Special Rupee Vostro Account (SRVA) for bilateral trade between Myanmar and India in Nay Pyi Taw yesterday.
During the meeting, Governor Daw Than Than Swe of the Central Bank of Myanmar talked about the activities of CBM aiming at boosting the bilateral trade with neighbouring countries, facilitating the bilateral transaction and trading, reducing the use of US dollars and exchange rate risk and promoting the use of local currency. She added that the rupee/kyat payment working committee was organized to implement the rupee/kyat trade mechanism.
The CBM held meetings with the Indian Embassy to Myanmar, the Reserve Bank of India, the Department of Financial Services and the Ministry of Finance and approved Joint Concept Note Paper and Standard Operating Procedures (SOPs).
Moreover, the guideline for payment procedures under the Special Rupee Vostro Account (SRVA) has already been released, and the payment can be made starting in February. The briefing will also be organized for the merchants by cooperating with UMFCCI and the Indian Chamber of Commerce. She also mentioned the benefits of implementing rupee and kyat direct payment in various sectors.
Then, the designated banks for rupee and kyat payments, such as UAB, CB bank PCL, and Punjab National Bank, explained the rupee/kyat trade settlement mechanism. Attendees participated in the discussion, and the governor concluded the meeting.
Source: The Global New Light of Myanmar