Myanmar, Thailand to use Kyat, Baht for border trade

Myanmar and Thailand have signed a memorandum of understanding (MOU) to promote the use of the Myanmar Kyat and Thai Baht for trading at the border.
MoU was signed by U Kyaw Kyaw Maung, governor of the Central Bank of Myanmar (CBM) and his counterpart form Thailand, Veerathai Santiprabhob.

The governors also inked another MoU to promote financial innovation and services for payments through collaboration between the two countries according to the statement issued by the Bank of Thailand.

The agreements were made at the IMF-World Bank meeting in the US on October 18.
However, as the MOUs were “unplanned” and took place after negotiations on both sides, further details will be ironed out later, said Daw Myint Myint Kyi, Director General of the CBM.

U Hnin Oo, vice chair of the Myanmar Fisheries Federation said “Even though trading at the Thai-Myanmar border is mostly conducted in kyat and baht, payments through banks are conducted in US dollars. At present, when we make a payment with a bank, we have to exchange to dollars first. Under the agreement, we will be able to narrow any exchange rate losses made.”

 
Thailand is the second largest trading partner among four countries which share borders with Myanmar. Trade volumes at the Thai-Myanmar border, including Tachileik, Myawaddy, Kawthoung, Myeik, Htee Khee and Maw Taung during fiscal 2018-19 amounted to US$3.8 billion, according to the government data.

Source: The myanmar times