Myanmar Money Exchange
The Myanmar money exchange is the Kyat. The Foreign Exchange Certificate (FEC), which is (officially) equivalent to the US dollar, is the second currency. FEC can be used for many different types of goods and services but Kyat is also necessary, especially at local shops and markets in Myanmar. Foreigners must pay for air and train tickets in FEC or dollars and also the entrance fees to some tourist sites in Myanmar such as the Shwedagon Pagoda.
The Myanmar money exchange rates between these three currencies often move in mysterious ways. There are "official" and "unofficial" rates which move with Myanmar market demand and supply. The US dollar is usually somewhat more stable against the kyat than the FEC, but both can appreciate or depreciate dramatically within short spaces of time in Myanmar.
The Myanmar money exchange rates between these three currencies often move in mysterious ways. There are "official" and "unofficial" rates which move with Myanmar market demand and supply. The US dollar is usually somewhat more stable against the kyat than the FEC, but both can appreciate or depreciate dramatically within short spaces of time in Myanmar.
Apart from a number of private Myanmar commercial banks, banks are nationalized and centralized under the Myanmar Economic Bank. Most foreigners do not open bank accounts in Myanmar, preferring to keep money in a safe in their home. Only the Myanmar Foreign Trade Bank offers a foreign currency account for foreigners: Us dollars can be deposited in cash or through telegraphic transfer from a bank abroad. However, since the US imposed its latest round of sanctions on Myanmar in August 2003, inward remittances of US dollars involving US banks have ceased.
If you do have US dollar deposits in the Myanmar Foreign Trade Bank, you cannot withdraw in US dollars, only FEC, unless the account holders can show evidence that they are leaving Myanmar (e.g. an air ticket of a holiday outside of Myanmar is sufficient). In theory, this should not matter as the two currencies are supposed to be at parity, but in practice the FEC often trades at a discount to the US dollar. If you need to open a bank account in Myanmar, be prepared for any transactions to be lengthy affairs; there are usually many steps involved and much paperwork.
Another fallout of the new sections by the US in 2003, is that credit card transactions involving Myanmar-based merchants have not been permitted in Myanmar.
If you do have US dollar deposits in the Myanmar Foreign Trade Bank, you cannot withdraw in US dollars, only FEC, unless the account holders can show evidence that they are leaving Myanmar (e.g. an air ticket of a holiday outside of Myanmar is sufficient). In theory, this should not matter as the two currencies are supposed to be at parity, but in practice the FEC often trades at a discount to the US dollar. If you need to open a bank account in Myanmar, be prepared for any transactions to be lengthy affairs; there are usually many steps involved and much paperwork.
Another fallout of the new sections by the US in 2003, is that credit card transactions involving Myanmar-based merchants have not been permitted in Myanmar.
