Myanmar establishes Foreign Exchange Supervisory Committee to oversee use of foreign currency
On 13 May 2022, the Myanmar State Administration Council published Order No. 28/2022 (“Order”), dated 4 April 2022, that provides for the establishment of the Foreign Exchange Supervisory Committee (“FESC”), its appointed members, and its functions.
The members of the FESC include Union Government Ministers, a member of the State Administration Council, the Union Auditor-General and the Chairperson of the Central Bank of Myanmar.
The Order provides that the FESC will “scrutinise and approve” the use of foreign currency required for the following purposes:
- Importation of machines, machinery needed for domestic investment and manufacturing businesses and equipment and raw materials needed for manufacturing;
- Importation of fuel, medicines, edible oil, fertilisers, insecticides and construction materials that are not available locally, which are needed for the livelihoods of the people;
- Citizens’ social matters such as going abroad for medical treatment, educational and religious purposes;
- Importation of general goods, repayment of offshore loan principals and interest, and repatriation of profits from investments; and
- Importation of luxury goods where necessary.
The FESC will also supervise matters relating to the circulation of foreign currency for domestic and international investments, manufacturing, export/import and services businesses including education and health in Myanmar.
The Order concludes with the broad provision that the FESC shall also carry out matters relating to foreign exchange supervisory activities and other duties as may be assigned.
