Myanmar: Central Bank of Myanmar Allows Fuel Import Repayments in Chinese Yuan

DFDL Myanmar

13th October 2022

On 30 September 2022, the Foreign Exchange Supervisory Committee of the Central Bank of Myanmar (“CBM”) issued Letter No. FE-73 (23/2022), allowing fuel import entities to make repayments of financing agreements in Chinese yuan (“RMB”) in a bid to prevent delays in oil distribution to consumers in Myanmar.

On 30 September 2022, the Foreign Exchange Supervisory Committee (“FESC”) of the Central Bank of Myanmar (“CBM”) issued Letter No. FE-73 (23/2022) as a result of discussions held during meeting No. (53/2022).

The letter has allowed fuel import entities to make repayments of financing agreements in Chinese yuan (“RMB”) in a bid to prevent delays in oil distribution to consumers in Myanmar. The measure was introduced in part because of decreasing availability of US dollars (“USD”).

Letter No. FE-73 (23/2022) states that fuel importers who acquired foreign currencies through trade financing agreements are allowed to make payments in RMB for certain portions of the SWAP Facility received from fuel companies and payments in RMB for fuel costs in the future.

For acquiring SWAP through a USD trade financing agreement, authorized dealer (“AD”) banks are required to provide services for retail sales of foreign exchange earnings from

Entities (Myanmar kyat conversion policy exempted)
Individuals in foreign currency from abroad
Income from Worker Remittances
USD purchased from 35% of export earning

AD banks must arrange the repayments of SWAP and carry out the acquisition of trade financing depending on the repayment amounts.

We trust that this information is helpful. Please let us know if you have any questions or would like to discuss this or any other legal issues in Myanmar.

The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.

Contact: myanmar@dfdl.com

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DFDL Myanmar

Myanmar
dfdl.com

Founded in 1995, DFDL is one of the oldest foreign legal and tax firms in Myanmar.

DFDL provides a full range of legal and tax services to foreign and local investors operating in Myanmar. Our team of more than 30 experienced local lawyers and foreign legal advisers in Yangon and Naypyidaw provides efficient, effective, and practical legal services at an international standard, coupled with a high level of personal in-depth knowledge of the local environment.

DFDL is best placed to advise Asian and international companies on their investments in Myanmar.

Our Myanmar business unit is led by Partner and Managing Director William D. Greenlee, Jr.

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