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CHAPTER V Organization and Management

24. The Central Bank shall be administered by a Board of Directors.

25. (a) The members of the Board of Directors of the Central Bank shall be appointed by the Government. Such Board shall be constituted with seven members;
(b) The Board shall consist of the following persons: —
(i) the Governor, the Deputy Governor and four members appointed by the Government;
(ii) a Director appointed ex-officio by the Ministry;
(c) The term of office of the Governor and the Deputy Governor of the Board of Directors shall be 5 years. The term of office of the other members shall be 4 years. Such persons shall be eligible for re-appointment for more than one term;
(d) The Governor and the Deputy Governor shall devote their whole time to the functions and duties of the Central Bank and shall not engage in any other remunerated employment;
(e) The Board shall assign an officer of the Central Bank as Secretary of the Board.

26. The Governor shall serve as chief executive officer of the Central Bank and be responsible to the Board for the day-to-day management of the Central Bank and the implementation of the policy.

27. The Governor shall have the powers to take action, enter into contracts, and sign instruments and documents on behalf of the Central Bank. He may, in accordance with the resolution of the Board delegate such powers to the officers of the Central Bank.

28. In the initial Board of Directors, half of the members nominated by the Government shall be replaced or re-appointed after two years by the decision of the Government.

29. The following persons shall not be appointed as a member: —
(a) Pyithu Hluttaw representative;
(b) a salaried personnel of the Government and any organization subordinate to the Government;
(c) a person who is not a citizen;
(d) the spouse, parents, son, daughter, brother and sister of a member;
(e) directors, principal shareholders or partners of a company or a partnership if a member is an officer, director, principal shareholder or partner in such company or partnership;
(f) personnel or principal shareholders of a bank or financial institution.

Provided that the Government may exempt any person mentioned in the provisions of sub-sections (a) and (b) for special reasons.

Explanation
“Principal Shareholder” contained in this section means the beneficial owner of more that 10 per cent equity interest of a company, partnership or financial institution.

30. A member shall cease to be a member if he or she: —
(a) infringes the restrictions mentioned in section 29;
(b) is convicted of any offence prescribed by the Ministry;
(c) has obtained permission after submitting the resignation to the Government;
(d) is adjudged incapable of performing his or her duties by the authority concerned;
(e) has failed to attend the Board meetings for three consecutive months without leave from the Board.

31. Any vacancy occurring by reason of the resignation or termination or death of any member of the Board shall be filled with any suitable person by the Government for the unexpired period of the term of office of the member concerned. Such vacancy shall be filled within 6 months from the date of occurrence of the vacancy.

32. The Board may establish committees with suitable persons for the effective performance of the functions and duties of the Central Bank. In so establishing, the duties and powers of such committees shall be determined appropriately.

33. (a) The meeting of the Board shall be convened at least once a month. Provided that a meeting may be convened at any time by the Governor or in his absence by the Deputy Governor or by the wishes of the majority of the members;
(b) Half or more than half of the appointed members attending the meeting shall constitute a quorum;
(c) The Governor or the Deputy Governor in the absence of the Governor, or in the absence of both, one of the members elected by the Board, shall preside at the Board meeting;
(d) At the meetings of the Board, decisions shall be adopted by the majority of the votes of the members present. In the event of an equality of votes, the decision shall be adopted by the casting vote of the Chairman of the meeting.
34. (a) The Governor and the Deputy Governor shall be entitled to receive salary and allowances in accordance with the terms and conditions proposed by the Board and determined by the Government. Such salary and allowances shall be borne by the Central Bank.
(b) The member’s shall be entitled to receive remuneration proposed by the Board and determined by the Government. Such remuneration shall be borne by the Central Bank.

35. The Board members shall disclose fully to the Board their pecuniary or business interest and those of the members of their families. The members shall refrain from voting on any matters related thereto which become the subject of Board action. Provided that such interests shall not disqualify the interested party for the purpose of constitution of a quorum.

36. The Governor and the Deputy Governor shall be deemed to be public servants under section 21 of the Penal Code.

37. The Board shall prepare and maintain an organizational set-up for the performance of the functions and duties of the Central Bank. Officers and staff within such organizational set-up shall be appointed. Such personnel are public servants.

38. The Board shall prescribe with the approval of Government the Central Bank Service Regulations relating to the appointment of personnel, promotion, maintenance of discipline, determination of salary and allowances.

Date : 20th Oct 2017

 

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Source : forex.cbm.gov.mm

Interest Rate(%)
Central Bank Rate 10% pa
Minimum Bank Deposit Rate 8%pa
Maximum Bank Lending Rate 13%pa
Economic Indicators (%)
GDP Growth 5.90 %
Annual Rate of Inflation 4.70 %
Year on Year Inflation 2.40 %

     Source : Ministry of Planning and Finance