Chamber calls on Myanmar govt to ensure forex stability 

In a bid to minimise the fluctuation-driven impacts, the chamber will send its recommendations to the government this week, through related ministries such as commerce, planning and finance, according to its vice president Maung Maung Lay.
“Now, importers do not even know what to do in the light of the exchange rate fluctuations. Manufacturers cannot seize the opportunities, either. It (the rate) is really hard to predict,” he said.
“To solve it out, UMFCCI has systematically conducted a report on the exchange rate, in which we provide some recommendations on how to control the fluctuations. We will send it to the government within this week.” 
Maung Maung Lay said the recommendations were based on the chamber’s two discussions with its patrons, consultants, bankers and economists as well as Myanmar Bank Association. The recommendations can be divided into five core areas -strengthening the monetary policy, attracting more foreign income, improving Kyat demand, recommendations for trading, and long-term processes.
In the report, UMFCCI urged the central bank to control market stability by practicing managed floating exchange rate rather than free floating one. It also urged to weaken illegal players and terminate the black market. 
“Now, anyone can withdraw the maximum US$5,000 (Bt180,000) from a single withdrawal of his foreign account. And only two withdrawals are allowed per week. Such prohibition should be instantly lifted,” he said.
The government needs to monitor the capital brought in by approved foreign businesses, and help Myanmar nationals working abroad with officially sending money back to their families for the long run. It also needs to monitor whether foreign currencies stored in foreign banks, Myanmar Foreign Trade Bank, and Myanmar Investment and Commerce Bank flow into the local market. 
International organisations such as World Bank, Asia Development Bank and Japan International Cooperation Agency have committed to support Myanmar with $4 billion worth of development aid. UMFCCI also urged the government to ensure inflow of committed support as soon as possible.
“The government should make Kyat stronger by setting policies to use only the local currency in such payments as in hotels and restaurants, air tickets, advisory services and salary of the staff. It should also encourage money transfers by credit cards,” he said.
In the short run, the government needs to review the list of mostly-imported items and reduce imports of some items, based on people’s needs. In the long run, more foreign banks should be allowed to enter, and productivity must be increased to surge exports, especially value-added products and the agriculture sector. Supporting industries in the supply chain should also be encouraged.
Maung Maung Lay believes that the government will follow the chamber’s suggestions, as it considers the private sector as an engine of growth. He is confident that UMFCCI’s input would help Myanmar move forward.
“For our country to grow further, we need money. So we must find ways to get money. We need to help our businesses to produce more. It is important to create better |business environment by maintaining the exchange rate stability,” he said.
The chamber has also planned to hold a comprehensive workshop on the exchange rate in the near future by inviting several associations and businesspeople from a wide range of sectors.