Burmese banks launch overseas exchange services
Four private banks in Myanmar are launching money exchange services in three ASEAN countries, creating secured channels for remittances from Thailand, Malaysia and Singapore. February 09, 2012 | Wong Wei HanFour private banks in Myanmar, including Cooperative Bank, Kanbawza Bank, Asian Green Development Bank and Ayeyawaddy Bank, will start offering money exchange services in Thailand, Malaysia and Singapore in February 2012. The launch of these services is significant for overseas Burmese, who will now have secured channels to remit money back home. This marks one of the initiatives Myanmar has taken in recent times to reform its financial system as it looks to open up for deeper integration with the rest of ASEAN members. The four banks first received the permission by Myanmar’s Ministry of Finance and Revenue in December 2011 to provide overseas exchange services. Following the launch these banks will have their money exchange services established in separate countries. The Cooperative Bank will set up in Singapore, the Ayeyawaddy Bank in Malaysia, the Kanbawza Bank in Thailand, and the Asian Green Development Bank in both Singapore and Malaysia. The services will be crucial for Burmese immigrant workers, which can be found in large number across Southeast Asia but mostly in Singapore, Malaysia and Thailand. Their remittances sent home account for one of the major sources of income for the Burmese economy, totalling up to $150 million as of 2008 according to a World Bank estimate. However, the money could only enter Myanmar through a network of unofficial brokers at the price of sizable commissions. An official and regulated structure will provide overseas Burmese with reasonably priced services through a regulated structure, which also helps secure the remittances from external fluctuations such as the currency crisis in June 2011 as a result of a strengthening of Burmese kyat against dollar. The launch of overseas exchange services follows a string of positive changes made by the Burmese government to facilitate a more open financial system as the country slowly picks up its pace in political and economic reforms. One of these changes is t... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
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