Central Bank revokes licences of 13 forex firms

By Admin 16 Aug 2023

DMG Newsroom
16 August 2023, Sittwe

The junta-controlled Central Bank of Myanmar said in a statement that it had revoked the licences of 13 foreign exchange companies. The CBM statement said the forex firms had not complied with the Central Bank’s orders and instructions.

Among the foreign exchange companies whose licences were revoked by the junta are Prime Residence Co Ltd, West Line Co Ltd, IMA Co Ltd, Great Father Sons General Trading Co Ltd, Gold Foil Co Ltd, Big Lion Gems Co Ltd, Global International Investment and Development Co Ltd, and World Fortune International Finance Group Share Co Ltd.

As the junta has continued to revoke licences and close business licences, foreign exchange companies have stopped exchanging dollars.

“Other currencies are exchanged, but dollar exchanges are not. Due to the situation, foreign exchange companies have stopped trading dollars,” said an official from a money changer in Yangon’s Mayangone Township.

The dollar exchange rate is rising above the price set by the CBM in the domestic exchange market. Although the CBM set the price at K2,100 per dollar, exchange rates currently range from K3,580 to K3,800 per US dollar in the domestic exchange market.

As the dollar price set by the CBM does not match the external market price, licensed exchange companies have stopped trading dollars.

“We only exchange in Thai baht. The Thai baht price is not very stable, but if it is compared to the dollar, there is no need to send a list of exchanges,” said a foreign exchange operator.

Most money changers who buy and sell foreign currency are not able to sell at the price set by the junta due to the increase in dollar price, so they only change Japanese, Chinese, Malaysian, Singaporean, Thai and EU currencies, other than US dollars.