The Central Bank of Myanmar will no longer fix the reference rates for currency exchange, said its vice-governor Set Aung.
“Currently, the fixing of the reference exchange rate is based on the auction system. The reason is that currency exchange rates between the government and the private exchange counters differ. The central bank is implementing a multiple exchange rate system with the technical assistance of the International Monetary Fund (IMF) in order to ditch the reference rate system. Now we are ready to introduce the inter-bank market rate system. And the IMF is providing technical assistance for the final step,” he added.
Under the inter-bank market rate system, the central bank will get all transactions of inter-banks through electronic platforms and then announce the inter-bank transaction rate, he continued.
According to the monetary policy, the central bank is working to make the monetary sector and prices stable and the local currency stronger, by using means and ways such as the calculation of reserve funds and foreign currency exchange rate, interest rate policy, buying and selling of treasury bonds in the monetary market, the stability of foreign currency exchange rate and the foreign exchange reserve management.
Source: Eleven Myanmar
