Wednesday, April 30, 2008

Myanmar to designate Singapore, Chinese currencies in trade

(Xinhua) Updated: 2008-04-30

Myanmar is deliberating to designate Singapore dollar and Chinese Renminbi yuan as main currencies in its foreign trade transactions in order to facilitate such undertakings of the country, leading local weekly the Yangon Times reported Wednesday.

Myanmar has been using for decades five currencies -- US dollar, Sterling pound, Japanese yen, Swiss Franc and Euro in its foreign trade transactions.

The introduction of the two foreign currencies in three state-run banks will be sought which are Myanma Investment and Commercial Bank (MICB), Myanma Foreign Trade Bank (MFTB) and Myanma Economic Bank (MEB), the report quoted the Ministry of National Planning and Economic Development and the Union of Myanmar Federation of Chambers of Commerce and Industry as saying.

By introducing the use of the two foreign currencies in its foreign trade transactions, Myanmar could overcome some of its difficulties currently encountering in its foreign trade, the report commented.

The transaction of US dollar account were much affected ever since United States' financial sanctions against Myanmar were introduced in 2003.

Myanmar's foreign trade hit nearly $8 billion in 2006-07, registering a record high in 18 years since 1989. The foreign trade during that year was up 42.9 percent from $5.54 billion in 2005-06, enjoying a trade surplus of $2.08 billion.

Such surplus has been gained in the past five consecutive years since 2002-03, before which the country suffered a trade deficit for many years.

Latest statistics show that Myanmar's foreign trade in the first half (April-September) of 2007-08 was up 30.46 percent, reaching $5.049 billion compared with the same period of 2006-07.


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