Myanmar approves Thai currency for international payments and settlement

27 September 2023

On 14 August 2023, the Central Bank of Myanmar (“CBM”) issued Instruction No. 11/2023 which designates Thai Baht (“THB”) a permissible currency for international payments and settlement transactions. Authorised dealer banks - that is, banks licensed to trade in foreign currency - are now able to include THB in their cross-border financial operations. 

This is the latest development in the evolving foreign exchange management situation in Myanmar. Since April 2022, Myanmar has had in place rules requiring conversion of foreign currency transfers and balances to local currency, with most instructions referencing the US dollar though the CBM has instituted a direct payment mechanism allowing THB to Myanmar Kyats conversion for Myanmar-Thailand border trade and other flows of capital. 

Other requirements regarding foreign exchange remain in place, including obtaining the approval of the Foreign Exchange Supervisory Committee to use foreign currency for international payments.