Rules on Myanmar Foreign Exchange

Myanmar Foreign Exchange is regulated by the Foreign Exchange Management Law (10 Aug 2012), which supersedes the Foreign Exchange Regulation Act (1 Aug 1947) and is the governing law on foreign exchange controls. As the implementation of the new law is an ongoing work for the Central Bank of Myanmar (CBM), some aspects of the old law may still be observed in practice until details of the new law are announced.Myanmar Foreign Exchange

Currently, the Myanmar Kyat is non-convertible and non-negotiable outside Myanmar. Myanmar follows a managed floating rate for foreign exchange comparison.  Remittance of foreign currency into the country should present no problems. Most outward remittances of foreign currency are restricted and require approval from the CBM. Authorisation should be forthcoming provided that there is sufficient documentation to support legitimate expenditures.

Repatriation of Profits from Myanmar

Notification no. 40/2011 and the Investment Rules regulate the use of foreign currencies in investments under the Foreign Investment Law. The remittance or repatriation of funds, profit and capital are subject to prior approval of the MIC and are also subject to the Myanmar Foreign Exchange Regulations.

The required supporting documentation for income repatriation includes:-

  • CBM application form
  • Audited financial statement
  • Bank balance certificate
  • Tax clearance certificate
  • Directors’ resolution authorising payment of dividend
  • Auditors certificate certifying capital/loan principal
  • Auditors certificate certifying interest details
  • Documentation evidencing remittance of capital or loan into Myanmar
  • CBM approval

Repatriation of profits from Myanmar includes the right to repatriate net annual profits, net salaries, any amount of foreign currency permitted by the MIC to be repatriated; and any amount receivable after termination of the investment.