The Republic of the Union of Myanmar

Central Bank of Myanmar

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CHAPTER VI Issuance of Currency

39. The monetary unit of local currency shall be the “Kyat.” The Kyat shall be divided into one hundred units which shall be called a “Pya.” The symbols in the English language for such currency shall be “K” and “P”, respectively.

40. (a) The Central Bank shall have the sole right to issue currency notes and coins. Currency notes and coins issued by the Central Bank shall be legal tender throughout the State;
(b) In cash transactions: —
(i) in the case of currency notes, payment of any amount may be made;
(ii) in the case of coins, payment of an amount exceeding two hundred times the denomination of the smallest currency note in circulation may be refused to accept.

41. Any instrument or transaction or liability relating to money or involving the payment of money in accordance with law shall, in the absence of any expressed agreement to the effect that was made in terms of foreign exchange be deemed to have been made in terms of the Kyat within the State.

42. Whoever, other than the Central Bank, issue or use currency notes, coins or any type of instrument or tokens payable to bearer on demand, having the appearance of legal tender, shall be deemed to be guilty of an offence punishable under this Law. Cheques and drafts payable in cash to bearer on demand shall not be deemed to be instruments having the functions of a currency note for the purpose of this section.

43. The Central Bank shall arrange for the printing of notes and minting of coins, for the security and safe custody of unissued currency notes and coins, and for the custody and destruction as may be necessary of plates, dies, and retired currency notes and coins.

44. The denominations of currency notes and coins and their design, composition and other distinguishable characteristics shall be as determined by the Central Bank with the approval of the Ministry.

45. If it is necessary to withdraw any currency notes or coins in circulation the Central Bank may, with the approval of the Government issue a declaration informing the public in advance and call in such currency notes or coins on payment of the face value thereof. On the expiry of the date mentioned in the declaration, currency notes or coins which are to be withdrawn by such declaration shall cease to be legal tender. Provided that a period not exceeding 5 years from the date of declaration by the Central Bank shall be prescribed, and within such period there shall be the right to exchange by presenting the value of such currency notes or coins.

46. (a) The Central Bank shall redeem currency at face value on demand of holders thereof;
(b) Banks shall exchange legal tender currency notes or coins, with other denominations on demand without charges;
(c) Notwithstanding anything contained in any existing law, no person shall as of right be entitled to demand from the Central Bank, the value of any lost, stolen, defective or defaced currency note and coin. Provided that the Central Bank may refund the value of any defective or defaced currency note and coin after examination in accordance with the procedures, regulations and bye-laws.

47. The monetary liabilities of the Central Bank, comprising currency in circulation and other sight liabilities denominated in domestic currency shall be subject to an annual financing programme. The Central Bank shall prepare such programme in consultation with the Ministry. In order that the Central Bank may coordinate the management of the foreign exchange reserves and the credit to be granted by the Central Bank in accordance with its aim and objectives, such programme shall be reviewed quarterly by the board.

Date : 20th Oct 2017

 

1362.0 / USD

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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