MYANMAR has been implementing to permit investments made in Yuan Renminbi to spur investments in the country, according to a meeting held between the Ministry of Investment and Foreign Economic Relations and Myanmar-China Business Association on 8 November at the Yangon Region Investment Committee’s office.
As the Chinese yuan surges in global trade finance, Myanmar is also preparing to accept direct investment in yuan, said Dr Wah Wah Maung, Union Minister for Investment and Foreign Economic Relations.
The US dollar is the sole foreign currency allowed for foreign direct investment. At present, Myanmar is endeavouring to settle the yuan for direct investment by Chinese investors. Furthermore, yuan payment in domestic investment businesses, permit for carrying yuan, making payment directly in yuan to China’s banks and cooperation with the Central Bank of Myanmar to facilitate the yuan-kyat exchange and to open yuan bank accounts were also discussed. The ministry asked Chinese business entities to submit possible difficulties in direct yuan investment.
Myanmar and China, as members of the Regional Comprehensive Economic Partnership (RCEP), have also signed a Myanmar-China investment promotion and protection agreement to safeguard bilateral investments and ensure smooth business operations. The ministry has allowed the formation of Myanmar-China Business associations in regions and states, and reached 25 associations so far.
China is the second largest investor in Myanmar, primarily in power, transport and communication, manufacturing, natural gas and agricultural businesses. — ASH/KK
