Myanmar undergoes financial reform in bid to attract foreign investment
After a 25-year isolation period that left a shattered economy, the now civilian government’s moves to revamp the economy has drawn much outside interest. April 30, 2012 | Lalitha SivanesanMyanmar is undergoing an economic transformation, after decades of military rule and self-imposed isolation. The country transitioned to a nominally civilian government in late 2011, paving the way for economic reforms as it moves to repair its stagnant and tattered economy. Naturally, this has spurred great interest from the outside world. With the help of the IMF, Myanmar has embarked on an overhaul of its complex exchange-rate system, beginning with a managed flotation of its currency, the kyat. The move equates the official currency rate with its black market value. This simplified currency system based on supply and demand combined with central bank intervention, is expected to help facilitate trade and investment as Myanmar gradually opens up. The Tokyo Stock Exchange and the research unit of Daiwa Securities have signed an agreement with Myanmar’s central bank to help open the country’s first bourse by 2015, which will help develop capital markets in the country. Daiwa had earlier collaborated with the country’s central bank to establish the Myanmar Securities Exchange Centre. The overhaul of Myanmar’s financial systems, together with electoral reforms, is set to be justifiably rewarded by the international community. Canberra has taken the lead by announcing a resumption of trade relations with Myanmar. The United States has promised to restore full diplomatic relations and pledged to lift wider financial restrictions on Myanmar that could allow US investment in certain areas. British Prime Minister David Cameron, who recently visited Myanmar, also echoed this sentiment, calling for the suspension of most sanctions. Similarly, Canada and the European Union have lifted most sanctions. Japan has also jumped on the bandwagon, agreeing to forgive Myanmar $5 billion in debt and overdue charges, and resuming development loans to the South-east Asian country. The potential lifting of restrictions from foreign countries ... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Government FinanceGovernment Finance, Government Finance, , Aid Disbursement , Capital Marketsaid,capital, Aid Disbursement ,Capital Markets, Keywords:Myanmar, IMF, Tokyo Stock Exchange, Daiwa Securities, Myanmar Securities Exchange Centre, Aung San Suu Kyi, Thilawa Special Economic Zone Myanmar, IMF, Tokyo Stock Exchange, Daiwa Securities, Myanmar Securities Exchange Centre, Aung San Suu Kyi, Thilawa Special Economic Zone
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