Myanmar, India Weigh Currency Swap to Boost Trade

 

CENTRAL Bank of Myanmar Governor Dr Khin Naing Oo received Indian Ambassador Mr Abhay Thakur at the Central Bank of Myanmar meeting room in Nay Pyi Taw yesterday morning.

The Indian ambassador to Myanmar discussed the draft Currency Swap Arrangement being prepared between the Central Bank of Myanmar and the Reserve Bank of India. He explained that the draft amendment would allow Myanmar banks to open Indian rupee accounts with Indian banks and Myanmar kyat accounts with domestic banks. He also highlighted the importance of the Currency Swap Arrangement in facilitating bilateral trade, as foreign correspondent banks can open Vostro accounts with domestic banks, while domestic banks can open Nostro accounts with foreign correspondent banks.

Governor Dr Khin Naing Oo discussed the continued review of the terms and conditions of the Currency Swap Arrangement and the prioritization of the use of the two countries’ currencies in bilateral trade. He also said that the Central Bank of Myanmar is opening a rupee Nostro account with Punjab National Bank, while Punjab National Bank is working to open Myanmar kyat accounts with local banks in Myanmar. In addition, the Central Bank of Myanmar is working with Sberbank’s India branch to facilitate the use of all three currencies — the Indian rupee, Myanmar kyat and Russian rouble.

Deputy-Governors of the Central Bank of Myanmar and departmental officials also attended the meeting.

MNA/MKKS

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