Efficiency Costs of Myanmar’s Multiple Exchange Rate Regime

Hori, Masahiro; Wong, Yu Ching

doi:10.5089/9781451870572.001

Cited by 5 publications

(5 citation statements)

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“…In 1989 the retention rate was raised to 100%, but exporters were subject to a 10% export tax paid in foreign currency. 12 Since then, there was no surrender requirement on export earnings for the private sector or on foreign exchange allocation to private importers, so the foreign exchange market became divided between the public and private sectors (World Bank, 1995;Hori and Wong, 2008;IMF, 2012 The gap between the official exchange rate and that of the parallel market did not itself directly distort the economic activity of the private sector. Since private exporters were permitted to retain export earnings as FCDs, the gap between the two exchange rates did not impose an effective tax on exporters, unlike the dual exchange rate regimes in other countries.…”

Section: Market Liberalizationmentioning

confidence: 99%

Myanmar's two decades of partial transition to a market economy: a negative legacy for the new government

Kubo

2013

Post-Communist Economies

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Despite more than two decades of transition from a centrally planned to a market-oriented economy, Myanmar's economic transition is still only partly complete. The government's initial strategy for dealing with the swelling deficits of the state economic enterprises (SEEs) was to put them under direct control in order to scrutinize their expenditures. This policy change postponed restructuring and exacerbated the soft budget constraint problem of the SEEs. While the installation of a new government in March 2011 has increased prospects for economic development, sustainable growth still requires full-scale structural reform of the SEEs and institutional infrastructure building. Myanmar can learn from the gradual approaches to economic transition in China and Vietnam, where partial reforms weakened further impetus for reforms. The Institute of Developing Economies (IDE) is a semigovernmental, nonpartisan, nonprofit research institute, founded in 1958. The Institute merged with the Japan External Trade Organization (JETRO) on July 1, 1998. The Institute conducts basic and comprehensive studies on economic and related affairs in all developing countries and regions, including Asia, the

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Section: Market Liberalizationmentioning

confidence: 99%

Myanmar's two decades of partial transition to a market economy: a negative legacy for the new government

Kubo

2013

Post-Communist Economies

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“…As described above, the foreign exchange market was segmented between the private and public sectors (World Bank :18; Hori and Wong ; IMF ). The market structure can be depicted as in Figure .…”

Section: Structure Of the Foreign Exchange Marketmentioning

confidence: 99%

“…Instead, FCDs could be used for own imports or could be withdrawn in foreign exchange certificates (FECs). 10 As described above, the foreign exchange market was segmented between the private and public sectors (World Bank 1995:18;Hori and Wong 2008;IMF 2012). The market structure can be depicted as in Figure 3.…”

Section: The Segmented Foreign Exchange Market Before the April 2012 mentioning

confidence: 99%

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Real exchange rate appreciation, resource boom, and policy reform inMyanmar

Kubo

2013

Asian-Pac Economic Lit

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Over the six‐year period 2006‐11, the real exchange rate of the Myanmar kyat appreciated 200 per cent, resulting in the value of the US dollar in Myanmar falling to one‐third of its pre‐2006 level. While the resource boom is suspected to be the source of the real exchange rate appreciation, administrative controls on foreign exchange and imports had much more impact. Foreign exchange controls limited the convertibility of the kyat to foreign currencies and spurred negotiated transactions of foreign exchange outside the banking sector, hampering the foreign exchange market interventions of the government and Central Bank. Import controls repressed imports, aggravating excess supplies of foreign exchange. Relaxation of administrative controls is necessary for moderating currency appreciation.

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“…The foreign exchange market is effectively segmented between the private and public sectors (Hori and Wong, 2008).…”

Section: Ii1 Trade Policiesmentioning

confidence: 99%

Trade Policies and Trade Misreporting in Myanmar

Kubo¹

2012

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While the trade statistics of Myanmar show surpluses for 2007 through 2010, the corresponding statistics of trade partner countries indicate deficits. Such discrepancies in mirror trade statistics are analyzed in connection with the 'export-first and import-second' policy provisioning import permissions on permission applicants possessing a sufficient amount of the export-tax-deducted export earnings. Under this policy, the recorded imports and exports of the private sector have been maintaining equilibrium, whereas discrepancies in the mirror statistics have fluctuated. This suggests that traders adjusted mis-reporting in accordance with the supply and demand of the export earnings. The Institute of Developing Economies (IDE) is a semigovernmental, nonpartisan, nonprofit research institute, founded in 1958. The Institute merged with the Japan External Trade Organization (JETRO) on July 1, 1998. The Institute conducts basic and comprehensive studies on economic and related affairs in all developing countries and regions, including Asia, the

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Efficiency Costs of Myanmar’s Multiple Exchange Rate Regime

Cited by 5 publications

References 9 publications

Myanmar's two decades of partial transition to a market economy: a negative legacy for the new government

Myanmar's two decades of partial transition to a market economy: a negative legacy for the new government

Real exchange rate appreciation, resource boom, and policy reform inMyanmar

Trade Policies and Trade Misreporting in Myanmar

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