Myanmar Usd NotesBurma Usd Comments
The CBM asks the bank to agree to "imperfect" USD banknotes
Myanmar's central bank (CBM) has adopted a policy that stipulates that spent and colored US dollars may be acceptable at all commercial bank accounts, according to a senior CBM officer. The CBM is also working with appropriate foreign bankers to avoid the depreciation of depleted or polluted dollars, said Aung.
The CBM has instructed state and non-governmental institutions to pay all US dollars, provided they are not seriously tarnished, Dr. Set Aung said in a parliamentary meeting. "US dollars that are old, with marks, punches, signatures, inks, or marks, and those that are wrinkled or slightly tattered, must be acceptable to state and non-governmental institutions, provided they are easy to recognize as genuine or not," he said.
For a long time, Myanmar's financial institutions and currency exchange have kept a peculiarity: In 2006 or later, US dollars must be colorful and in absolute flawless condition: no wrinkles, punches, spots, traces of ink or cracks. But while talking to journalists at a news briefing, Dr Set Aung hinted that the lower chamber had compelled the CPM to issue the policy.
Business activity by a bank should not be subject to violent controls. E.g., the banks are compelled to adopt spotted bills, but the spending is ultimately being screened by the inter-bank competition accepting all the bills and those not doing," he said. On the US currency, we are trading the banknotes that can be deposited with CBM and are generally acceptable on the general paper markets, but we do not make banknotes with spots of ink," U Nay Win Maung, deputy manager of United Amara Bank said to Myanmar Business Today.
In 2012, CBM began granting forex licenses to public and privately owned financial institutions to enhance FX risk mitigation in the financial world. At first, the coin-changing license was issued to six public and privately owned financial institutions, includingKBZ Bank, Co-operative Bank (CB Bank), Myanmar Oriental Bank, Innwa Bank, Myawaddy Bank and Myanmar Industrial Development Bank.
Thein Phyu Money Exchange Counter was also opened in 2012 with the involvement of six participants.