Myanmar's central bank has announced a broad exemption of foreign entities from a controversial new policy requiring foreign exchange to be converted into local currency, a rule that triggered panic among business groups and residents.
In an effort to exert more control over foreign currency flows in the military-run nation, the central bank declared from April 3 that foreign exchange earned locally must be deposited at licensed banks and exchanged for the local kyat currency within one working day. The change will provide some relief for fuel importers, which, according to some industry sources, have been impacted by the exchange requirement.
The exemption notice did not provide a reason for the about-face, which came after some industry groups and embassies warned business activity in the country could be severely impacted.
Stupid people making stupid rules.