Myanmar to revoke forex service licenses in wake of unstable exchange rate

The Central Bank of Myanmar will revoke foreign exchange accepter and holder licenses starting next Monday in a bid to control fluctuation in exchange rate, said an announcement of the bank published Sunday.

Such license holders are set to return their licenses to the bank by Nov. 30.

The businesses and associations covered by the announcement include hotels, travel agencies, restaurants, duty-free shops, airlines, hospitals, foreign forwarders, communication businesses and business companies.

The central bank attributed the dollarization and higher demand in U.S. dollar to allowing the use of dollar currency in local trading and services that has caused instability of the exchange rate.

Meanwhile, Myanmar currency kyat continued to weaken against U.S. dollar in their exchange recently trading at 1,280 kyats per U.S. dollar as strong demand for the dollar persisted.