Cbm Myanmar

m³ Myanmar

Myanmar's announcement in June that all domestic payments must be made in Kyat and not in foreign currency came as a surprise to many. How does the CBM maintain market stability with regard to liquidity management? The CBM denies rumours of the bankruptcy of two banks. The official exchange rates for Myanmar Kyat (MMK), the Central Bank of Myanmar. "The Central Bank of Myanmar (CBM) is preparing a quarterly report to publish financial information," said Myint Myint Kyi, director at CBM.

Get to know the Central Bank of Myanmar

We consider the supervisory authority of the merchant banks in view of one of the government's most prominent measures to liberalize the country's finance sector this year. Myanmar Central Banks (CBM) will start the big move by granting a license to a non-German central banks to conduct wholesaling in the third or forth quarters of 2014, in supplement to the current practice of permitting a non-German central banks to establish only one representation.

After the granting of the license, the overseas institution will have an important role to play in promoting the growth of overseas investments in the Dominican Republic, as the overseas institutions will be able to provide credit to the overseas investor for their investments in Myanmar, as required by CBM at this time. The CBM is currently governed by the Central Bank of Myanmar Law (Pyidaungsu Hlattaw Law No. 16/2013).

Pursuant to the Act, CBM is headed by a Governing Council composed of nine members - the Governor of the Central Reserve and three Deputy Governors - and five professionals with many years of experience in the fields of business, fiscal and bank management, accountancy and audit. In the following examples, the CBM's roles, obligations and authorities are as required by law: formulation of fiscal stance; definition of FX controls; monitoring and control of credit institutes; control and administration; granting short-term loans to commercial bankers; monitoring and control of the money and FX markets; granting licenses to the CBM and the credit institutes; and conducting the necessary funds to purchase steady and sustainable overseas business.

In addition to the above sampling, CBM aims to guarantee the currency stable of the sovereign debt and one of CBM's main tasks in securing currency stable is to be responsible for the approval, revocation, control, supervision and regulation of banks and credit institutions. Other great power are the trade of stock exchanges allowances on the finance markets, the imposition of a lower interest and minimum reserves and the announcement of interest and credits.

Furthermore, the employees appointed by CBM are authorised to access the offices of banking and finance institutes in order to view reports, books, documents and recordings. The CBM is also authorised to instruct the CBM and the credit institute to transmit the necessary information to CBM for verification.

The CBM's main tasks in this area are the implementation of currency policies and the fixing of currency rates on the recommendation of the GoN. CBM will have a similar role in the performance of currency managements as the other country's CBM.

Examples of such rolls are purchasing, retaining, selling and trading bullion, bonds, treasury notes and other instruments, or lending bonds denominated in another one. There are 121 paragraphs in the Act authorising CBM to oversight and supervision of banking and finance and it is important to recognise that CBM has the authority to adopt the necessary statutory policies, ordinances, orders, guidelines and processes.

In order to give our readership a complete view of the Myanmar Financial Institution Law, my next paper will examine the regulations of another piece of law, the Myanmar Financial Institution Law. Mr. Chulapong Yukate is the Chairman of Myanmar Advisory Limited and can be reached at chulapong3@gmail.com.

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