Foreign businesses question Myanmar foreign currency rules

Foreign business groups in Myanmar are raising concerns about new rules requiring businesses and individuals to convert all foreign currency holdings into the local currency

BANGKOK -- Foreign business groups in Myanmar have raised concerns about new rules requiring businesses and individuals to convert all foreign currency held in bank accounts into the local currency.

A statement issued Friday by the American Chamber of Commerce and British, French, Australian chambers and similar groups says the rules would lower Myanmar standards of living, stop foreign business activity and foreign investment and cause trade tensions.

“As written, the regulations effectively prevent the use of foreign currency in Myanmar which disconnects Myanmar from the global economy and global financial system," it says.

“Implementation of these measures and the associated lack of clear exemptions for foreign investments creates significant, and for some, insurmountable challenges to all businesses operating in Myanmar," the statement says.