Foreign entities in Myanmar get exemption from new exchange rule

The Central Bank of Myanmar has extended a broad exemption of foreign entities from a controversial new policy requiring foreign exchange to be converted into local currency. The exemption notice dated 20 April includes companies with approved foreign investments, firms in special economic zones, international non-government organisations, diplomats, United Nations agencies, and airlines. The exemption notice did not provide a reason for the about-face, which came after some industry groups and embassies warned business activity in the country could be severely impacted. The American and European chambers of commerce were among signatories to a joint statement from foreign business chambers that had warned the new currency rules would create “insurmountable challenges” for some businesses and would disconnect the country from the global financial system.