BANKING                                                  

1.

Types of Bank

2.

Exchange Arrangement

V. BANKING

1. Types of Bank

Central Bank of Myanmar (CBM) operates as a central bank and is the authority to oversee and regulate the financial institutions both State and private owned.

Four major specialized banks; the Myanma Economic Bank (provides countrywide domestic banking and saving services), the Myanma Investment and Commercial Bank (handles both domestic and foreign exchange transactions), the Myanma Foreign Trade Bank (deals in foreign exchange transactions) and the Myanma tern loans for agriculture and livestock breeding) are the state Twenty financial institutions.

Twenty domestic private banks are now operating banking services and forty-six foreign banks has opened representative offices in Yangon.

Apart from the above institutions, Myanma Insurance is the sole insurance organization and underwrites various classes of insurance.

2. Exchange Arrangement

The currency Myanmar Kyats is pegged to the SDR at K. 8.50847=SDR 1. Both exportation and importation of the Kyat is prohibited. All external payments are subject to authorization.

The CBM has issued Foreign Exchange Certificates (FECs), which is equivalent in US dollar since February 1993 for the convenience of tourists and to enhance the foreign exchange earnings.

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