Myanmar junta turns to barter to deal with growing trade deficit

The move comes as the national currency, the kyat, continues its month-long slide to new lows against the dollar

Myanmar’s military regime is implementing a barter system to cope with the country’s growing trade deficit, sinking kyat, and soaring prices, according to sources in the business community.

On Tuesday, the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) sent a notice to merchant associations informing them of the move by the junta-controlled Central Bank of Myanmar (CBM), the sources told Myanmar Now.

Under the new Barter Transaction Arrangement (BTA), import-export companies will be required to sign contracts with their foreign counterparts to exchange goods instead of paying for them in hard currencies, the UMFCCI notice said.

“They’re trying to reduce the deficit to zero because it is so high right now,” said one Mandalay-based merchant, speaking on condition of anonymity.  

“Of course, they also want to reduce volatility in the foreign exchange market by eliminating the need to. . .

Subscribe for full access to

Get unlimited access to high-quality reporting from the frontlines and support independent journalism.

Subscribe Now

Related Articles

Back to top button