Wednesday, 7 August 2013

For now, cash is still king in Myanmar

Myanmar may be open for business, but with an economy that is still primarily cash-based, there remain real barriers to foreign business travellers who are responding to the exciting opportunities of this emerging market. Today’s travellers to Myanmar have found that they need to carry US dollars to make any transaction. And not just any old US dollars – these bills must be clean and crisp, as merchants frequently reject blemished, creased, torn, damaged or old currency.


Further, travelling around Myanmar – or any country – with an excessive amount of cash just isn’t sensible. Besides the inconvenience, carrying cash can be a concern for security reasons.

These issues are more pressing given that Myanmar’s reintroduction to the world will – and already has – made it a venue for major events that draw delegates globally. The World Economic Forum on East Asia in June and the 27th Southeast Asian Games in December are two examples.

During such events, it is critical that merchants be able to process massive amounts of payments in short periods of time. As the situation stands, however, Myanmar’s financial infrastructure can’t adequately handle the incoming logistical needs of foreign delegates. 
Allowing international business travellers to use their payment cards in Myanmar makes their lives easier. But there’s more to it than that: the shift from paper-based currency to payment cards creates significant opportunity for countries like Myanmar to reduce the logistical financial barriers to investment in their countries and capture greater business spending.

Myanmar’s financial infrastructure continues to develop, and ATMs and point-of-sale credit card terminals are being introduced across the country. In the meantime, however, business travellers should remember to bring crisp, clean and new US currency, inform their banks that they will be travelling to Myanmar and, if possible, exchange their currency at the airport for more competitive rates.

source: CEI

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