Japan Appeals for Exemption from Myanmar Junta’s Foreign Exchange Rules
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The flags of Myanmar and Japan outside the Myanmar-Japan Thilawa Development Ltd in Yangon. 

By The Irrawaddy 7 April 2022
The Japanese Embassy in Myanmar has asked the junta’s Ministry of International Affairs to exempt Japanese companies and governmental organizations from the new directive that international trade earnings need to be converted into kyats at the formal fee in just a single functioning day.
An embassy letter explained: “Japanese firms functioning in Myanmar will facial area major challenges in following this new regulation, which will trigger difficulties in continuing their companies in the nation.”
The Central Bank of Myanmar’s buy will also have an effect on the embassy and other official businesses, like the Japan International Cooperation Company and Japan External Trade Organization, the letter claimed.
The embassy questioned for an exemption for Japanese organizations and official companies, citing the “bilateral relationship”.
The new principles say international exchange should be deposited in overseas forex accounts at certified banking institutions and will have to be converted into kyats within just a single performing day. It states individual notifications will be issued for exemptions, which motivated the Japanese letter.
The new directive is reportedly presently harming exports.
A businessman advised The Irrawaddy: “The central financial institution tells us to convert international trade into kyats within 24 several hours. But the maximum volume of dollars providers can withdraw [per week] from their financial institution accounts is 100 million kyats [US$56,000]. It will further worsen the funds circulation crisis.”
Though international trade will be converted at the official rate of 1,850 kyats for each US dollar, the market place rate is all over 2,050 kyats, which will hammer exporters, he extra.
The new policies will develop a dollar disaster and enhance the black sector, he mentioned.
