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Myanmar junta gives “green light” to officially use Chinese Yan (¥) for international payment

Yangon (Chindwin) : Central Bank of Myanmar announced a move to permit four banks, including the Chinese government-owned bank, to officially facilitate the international payment system for the Chinese Yuan, also known as Renminbi, mainly for the border trade with China. 

Chindwin has learned the four banks granted a license to roll out the Chinese Yuan as an official foreign currency are two Yangon branches of OCBC (Oversea-Chinese Banking Corporation Limited), Ayeyarwady Bank, and Co-operative Bank and UAB Bank. 

Also, these four banks are said to be current holders of licenses to trade foreign currency. 

A person with the knowledge of Myanmar junta’s plan of rolling out this Kyat -Yuan matter says, “The military junta aims to implement a direct transaction for China in order to enhance relations between the two countries, while it is also aiming to reduce the heavy reliance on the U.S currency when it comes to trading for exports and imports”. 

Myanmar junta makes this move as the strife-torn country is largely isolated by countries around the globe following the brutal military on 01 February 2021.

For this project, four banks are selected as these four banks have licenses for foreign exchange plus existing branches across the border trade towns, which the junta led Central Bank of Myanmar thinks will assist local traders and Chinese traders with the smooth payment. 

The junta appears to hold a view that pushing the Yuan to be an official foreign currency to make a direct payment with the Kyat (Myanmar currency) will boost Myanmar – China relations, helping streamline trade and the flows of goods. 

The Central Bank of Myanmar says this will streamline the international transaction and settlement systems.

Myanmar has never attempted to use Chinese currency as an official foreign currency to make international payment until to date.

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