27 July 2023

On 13 July 2023, the Central Bank of Myanmar (“CBM”) issued Notification No. 15/2023 to lower the percentage of export income that must be converted into Myanmar kyat from 65% to 50%. The Notification took effect on its issuance and amends Notification No. 36/2022.

Notification No. 36/2022 was issued in August 2022 and stipulated that 65% of export income received in foreign currency must be converted to Myanmar kyat within one day of receipt.

To read more on Notification No. 36/2022, please see our article “Myanmar clarifies rules regarding conversion and use of foreign currency for exporters and others”.

By way of background, CBM issued successive instructions in 2022 relating to mandatory conversion of foreign currency. The mandatory conversion requirement was announced in April 2022 via Notification No. 12/2022 which instructed that all foreign currency earned by Myanmar residents must be deposited in banks with licences to exchange foreign currency and converted into Myanmar kyat within one day of receipt. Subsequent variations and exemptions were issued to the conversion requirement.