The Central Bank of Myanmar Loosens Requirements on Export Earnings Conversion

On 7 August 2024, the CBM issued Notification No. 37/2024 to change the percentage of export earnings that must be converted into Myanmar Kyat.

Under prior Notification No. 26/2023 dated 6 December 2023, exporters were required to convert 35 percent of their export earnings into Myanmar Kyat at the CBM’s reference exchange rate.

Now, the CBM has decreased the percentage that exporters need to convert to 25 percent. This change goes into effect immediately and applicable to the export declaration made from 8 August 2024 onward.

Additionally, an announcement posted on the CBM’s website dated 8 August 2024 states that exporters will be allowed to apply the new percentage to maintain 75 percent of their export earnings in foreign currency based on their export declarations made between 3 April 2022 and 7 August 2024. The deadline to complete this is 30 November 2024. If exporters fail to do this within the said period, they cannot enjoy the lower 25 percent conversion requirement and will have to use the previously set percentage for the respective years. Furthermore, they could face having their license revoked or legal action including being blacklisted or imprisonment under the Myanmar Companies Law and the Foreign Exchange Management Law announcement.