At money-loss official exchange rates, resources may be deposited at state-linked banks.
13 September 2023 at 15: 18 PUBLISHED
Local studies claim that the military government of Myanmar is requiring foreign workers to transfer at least 25 % of their foreign currency money through the nation’s banking system.
According to The Irrawaddy, an independent Myanmar media company, the income the laborers remit will get converted to kyat at the standard rate, which is more than 40 % lower than the market price that is commonly used.
In essence, it claimed, government-affiliated financial institutions may have access to a cheap source of funding that the coup can use to strengthen its weak financial situation.
The effects may have a big impact on the families of the 2 million Myanmar nationals who are reportedly employed lawfully in Thailand.
According to the rules, workers who are scheduled to leave Myanmar on September 1 in order to find employment overseas must open a joint account with the Central Bank of Myanmar and deposit 25 % of their revenue into that account.
One of Myanmar’s largest private lenders, CB Bank, has instructed immigrant workers who are already internationally to send a quarter of their incomes through” standard” channels either monthly or every three weeks.
The Irrawaddy claims that while the regime’s guide transfer rate for the Thai currency is only 56 kyats per baht, the current market rate is closer to 100.
A immigrant who makes 20,000 Baht per quarter must transfer 5,000 BaHt using the government’s banking system. According to the news agency, unregulated exchange operators will give close to 500, 000 kyats for the same quantity, while banks may only receive 5,000 baht.
After their latest work permit expires, those who are already overseas and do not abide by the new law will be prohibited from working overseas for a period of three years, according to the announcement.
The 25 % payments must be transferred through the Myanmar banking system, and recruitment agencies have been urged to review their agreements with immigrant workers.
The state is providing incentives, allowing foreigners to invest and purchase property in Myanmar tax-free if they use the country’s established banking system or financial service providers with a central bank license.
The new condition has been criticized by Ko Nay Lin Thu of the Thailand-based Aid Alliance Committee, which supports migrant workers.
” We don’t want to provide them our hard-earned money.” In Thailand, we must pay income tax, and our transfers will soon be reduced, which is undesirable. He told The Irrawaddy,” This is an abuse of us immigrant staff.