THE meeting on the expansion of the use of Yuan/Kyat in Chinshwehaw and Baht/Kyat in the trade sector of Myeik, Kawthoung of Taninthayi Region was held in Nay Pyi Taw on 26 June.
Deputy Governor of Central Bank of Myanmar Daw Than Than Swe and officials from Thai banks such as the Siam Commercial Bank, Bangkok Bank, Kasikorn Bank, Myanma Economic Bank and local private banks attended the meeting.
The system was adopted at the Myanmar-China border and the use of local currencies, Yuan/ Kyat/Baht in Myanmar-Thailand border trade on 21 March. The meeting focused on the expansion of the use of Baht/Kyat in Myeik and Kawthoung and the use of Yuan/Kyat in Chinshwehaw.
The system aims to promote the bilateral trade, trade flows, payment and liquidity processes and the use of domestic currency in line with the ASEAN Financial Integration.
The ground Taskforce was organized to cooperate with the banks, Customs Department, Ministry of Commerce, local merchants, and region/state governments to start running the operations in the first and second weeks of July and to implement the Standard of Procedures and Banking agreement as quickly as possible.
In addition, they also discussed plans for Myanmar banks to accept remittances of Myanmar workers in Thai Baht through Thai banks in Thailand and issue them to their parents and relatives in Myanmar.
Under the collaboration of the Central Bank of Myanmar, the Ministry of Commerce, the Ministry of Planning and Finance, and the Central Committee on Ensuring the Smooth Flow of Trade and Goods, the expansion of regional trade through the use of Yuan/Kyat/ and Baht/Kyat and the reduction of the exchange rate risks have been carried out since the 2021-2022 FY.
Within the Yuan/Kyat pilot period, from January 2022 to the third week of June 2022, export revenue was Yuan 197.464 million, and import payment was Yuan 77.699 million, making the surplus Yuan 119.765 million.
Within the Baht/Kyat pilot period, from March 2022 to the third week of June 2022, export revenue was 1,540.46 million Baht, import payment 1,137.95 million Baht, making the surplus 402.51 million Baht. In addition, permission was granted for worker remittance, and revenue as of the third week of June 2022, was 29.548 million Baht.
The Payment Mechanism implemented by foreign banks was discussed several times by the Central Bank of Myanmar, and issues related to Baht/Kyat and Yuan/Kyat payments are coordinated by the Central Bank of Thailand, Chinese banks, and Thai banks. Liquidity support, trade financing and settlement time were clearly defined to convert trade surplus, and agreements were signed. — TWA/ GNLM