Posted in Legislative Research on Jan 23, 2020

The bill was posted on the website of Pyidaungsu Hluttaw on 27th of December 2019.

Current Status (23.01.2020) – awaiting submission to Hluttaw for debate

Bill in brief

The bill includes provisions and regulations for trading and holding of foreign exchange, gold and jewelry, and transfers and payments of current and capital accounts.

Summary of main provisions

  • The bill aims to improve foreign exchange management, develop socio-economic conditions and widen foreign economic relations and cooperation.
  • For foreign exchange management, the Central Bank of Myanmar (CBM) has to formulate a policy in line with the law, and announce the daily exchange reference rate based on the market rate.
  • The Union Government can declare a three-month emergency period relating to the foreign exchange business, and extends this once. During this period, the CBM can impose a temporary restriction on foreign exchange licenses.
  • According to the definition, the term “foreign exchange license holder” is an authorised person who can change or deal in foreign currency.
  • Within the country, the use of foreign exchange in selling, transferring and renting of goods and services, in terms of pricing and payment, must be in line with rules and directives of the CBM.
  • The direct transfer of foreign currency in cash, instruments and foreign currency denominated securities between the country and other countries must be also in line with rules and directives of the CBM. Except from this, other payments and transfers of foreign exchange must be done through an authorised person who can change foreign currency. The payment and transfer for trade must be done through an authorised person who can deal in foreign currency.
  • The CBM can issue, reject and revoke licenses. For violation of the law, the CBM can apply administrative penalties, and the final say lies in the board of the CBM.
  • The bill includes prohibitions and penalties. The prohibitions are prescribed as cognizable offences and before suing, the prior sanction of the CBM has to be secured.

Other relevant laws

Central Bank of Myanmar Law (2013)

Securities Exchange Law (2013)

Anti-Money Laundering Law (2014)

Counter Terrorism Law (2014)

Myanmar Investment Law (2016)

Links

Bill text

World Gold Council

Contact

Moe Aung, The Ananda, moeaung@theananda.org