Myanmar junta introduces new kyat-rupee exchange mechanism for trade with India

Facing challenges arising from insufficient American dollar reserves, the junta has authorised a new method for traders to exchange kyat directly for rupees in their transactions with their Indian counterparts

Myanmar’s junta-controlled embassy in New Delhi announced on Tuesday that a newly adopted procedure for direct currency exchange between Myanmar and India had gone into effect to facilitate bilateral trade. 

According to the embassy’s statement, the Punjab National Bank in Yangon, which has the military’s approval for direct payments in Myanmar, had cleared transactions for more than 10 million rupees’ worth of pulse exports to India using the mechanism.

At the rate of 25 kyat per rupee set by the Myanmar military regime, 10 million rupees is equivalent to 250 million kyat. 

“We would like to urge business owners on both sides of commercial transactions to use this transactional process to their mutual benefit,” the statement said.

The junta-run Central Bank of Myanmar has authorised only some financial institutions to conduct the rupee-kyat transactions, including India’s Punjab National Bank and Myanmar. . .

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