CBM nods to advance payment system for importers

 

November 7

THE Central Bank of Myanmar (CBM) has approved an advance payment system for importers to ensure timely access to foreign currency and stabilize exchange rates, according to the CBM’s announcement.

 

Once an import licence is granted, importers, under the new system, can pay in stages: 30 per cent of the total licence value when the import licence is obtained, 40 per cent when the bill of lading is presented, and the remaining 30 per cent when the import declaration is submitted.

 

The Central Bank will review and sell the necessary foreign currency for imports deemed essential to the country. The advance payment arrangement is expected to reduce late payments to foreign factories and suppliers and allow timely ordering and import of critical industrial raw materials and consumer goods.

 

It will also ease the burden on importers to settle the full amount at once and is expected to boost Myanmar’s international trade confidence. — TWA/KK