Dollar to Kyat todayThe dollar to Kyat today
The first three month of the BTMU in the land of Kyat
Three-month ago, the BTMU (Bank of Tokyo Mitsubishi UFJ) won an hour-long competition to become the first international banking institution to have a subsidiary in Yangon on April 22 of this year. Since then, the finance giant has fought Kyat for three consecutive month, but overall has found a solution to the country's shizophrenic state.
As with all international bankers who were able to do business in Myanmar this year, the BTMU is very limited. In particular, they cannot directly serve Myanmar's people or local businesses and may only open one office. To circumvent these limitations, the BTMU has joined forces with the local CB Bank to borrow inland.
It has been hard to draw Kyat deposit even with a Kyat counterpart. It is necessary to establish the inter-banking markets because we have rules against the Myanmar Kyat and US dollar liquidity," said BTMU Yangon branch general managers Mitsuhiro Kimura. The dollar spot rate of exchange was an important topic for the Sarasin Group in the first three month.
The dollar moved relatively little in the U.S. for legislative and operational purposes. Some of these were wanted by the administration; in an effort to stop the devaluation of the Kyat, in June the administration limited the use of the dollar for payment within Myanmar, even from abroad.
Moreover, it is not very well-liked by the local population to move the dollar between them. The majority of transfers to Myanmar are by money order, not through banking, and few individuals and even companies have access to banking balances, so the exchange rate is relatively low. The UN Capital Development Fund reports that only four per cent of households have their own banking account.
Also Mitsubishi has made investments in the Thilawa Special Economic Zone, together with two other companies as part of MMS Development Co Ltd. In order to draw investments into the land, allegedly through their banks, they organised an exhibition last weekend in Yangon to draw large companies from the fields of fastfood, chemical products for industry and building material.
The Forbes 2015 Schedule makes the Mitsubishi UFJ Financial Group (MUFG) the 11th biggest financial institution in the word with 2.3 trillion dollars in wealth. By way of comparison: According to government figures, the Central Reserve of Myanmar has 15 billion dollars in funds. Tokyo-Mitsubishi UFJ Ltd is a wholly owned company of Mitsubishi UFJ Financial Group, which is part of the Mitsubishi Group.