Central Bank of Myanmar Exempt Foreign Companies From Mandatory Forex Conversion -

Central Bank of Myanmar Exempt Foreign Companies From Mandatory Forex Conversion

DFDL Myanmar

23rd January 2023

On 30 December 2022, the Central Bank of Myanmar issued letter No. FE-1/2861(Ka) concerning the Foreign Exchange Supervisory Committee Meeting Resolution No. (78/2022), where Paragraph 1 (d) states that foreign currencies of companies with more than 35% of foreign shareholding do not need to be mandatorily converted into Myanmar Kyat.

On 30 December 2022, the Central Bank of Myanmar issued letter No. FE-1/2861(Ka) concerning the Foreign Exchange Supervisory Committee Meeting Resolution No. (78/2022). The most pressing issue faced by foreign companies in Myanmar was resolved by the decisions made in paragraphs 1(d) of the meeting resolution no. 78/2022.

Meeting resolution Paragraph 1 (d) states that foreign currencies of companies with more than 35% of foreign shareholding do not need to be mandatorily converted into Myanmar Kyat. Such foreign companies can use foreign currency for internal use and sell them to banks. However, foreign companies must seek prior approval from the Foreign Exchange Supervisory Committee if they wish to use foreign currency for outward remittances for non-trading purposes.

Meeting resolution Paragraph 1 (r) states that companies with more than 35% foreign ownership are not allowed to trade and export non-value-added agricultural products. The trading companies permitted to export agricultural products must continue utilising 65% of their export earnings per CBM’s notification number 36 of 2022.

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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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