Trucks parked on the Thai side of Friendship Bridge No. 2 on the Thailand-Myanmar border during the second week of April (EPA)
Myanmar’s military regime is implementing a barter system to cope with the country’s growing trade deficit, sinking kyat, and soaring prices, according to sources in the business community.
On Tuesday, the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) sent a notice to merchant associations informing them of the move by the junta-controlled Central Bank of Myanmar (CBM), the sources told Myanmar Now.
Under the new Barter Transaction Arrangement (BTA), import-export companies will be required to sign contracts with their foreign counterparts to exchange goods instead of paying for them in hard currencies, the UMFCCI notice said.
“They’re trying to reduce the deficit to zero because it is so high right now,” said one Mandalay-based merchant, speaking on condition of anonymity.
“Of course, they also want to reduce volatility in the foreign exchange market by eliminating the need to. . .
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