(Bloomberg) -- Myanmar’s military government has slightly eased its mandatory forex conversion rule for exporters and changed the reference exchange rate from 1,850 to 2,100 kyat per dollar as the national currency continues to weaken.
The Central Bank of Myanmar on Friday issued a notification with immediate effect allowing all traders to exchange only 65% -- from 100% previously -- of their export earnings for kyat. Citizens still have to convert all their foreign-currency holdings within one working day after receiving the money.
In April, Myanmar exempted most overseas nationals and entities from compulsorily converting foreign currencies into kyat after international push back over the move. The waiver applied to diplomats, special economic zones, businesses with more than 35% foreign investment, and local carriers that fly overseas routes.
The financial authority has also changed its reference exchange rate from 1,850 to 2,100 kyat per dollar. The average market rate remains about 20% higher than the new reference rate effective Friday.
Last month, the central bank also ordered companies and individual borrowers to suspend foreign loan payments and adjust repayment schedules with overseas lenders, in a bid to defend the nation’s dwindling foreign exchange reserves.
©2022 Bloomberg L.P.