ATM machines are now available, but can be unreliable and costly to use, while some users have reported fraud.
Part of the reason is the long removal of the Myanmar kyat from international markets. A sudden transition to the free movement of currency is highly likely to lead to the sharp depreciation of the kyat and consequent damage to the economy.
This could include the flight of capital out of the country, setting back the foreign direct investment (FDI) program.
Though the number of foreign organisa-tions and individuals in Myanmar wanting access to overseas banks is growing, the demand is not high enough to bring about improvements.
Most expatriates manage their money in two ways: for some, their employer pays part of their salary to an offshore account and the remainder in local currency. Others are paid locally in cash and leave the country to make deposits in an overseas account.
It is possible to make some international transactions here. Western Union has links with seven local banks that allow inbound transfers. But nobody knows when export transfers will be possible, even as demand continues to grow.
The attitude of some foreign banks doesn’t make things any easier. Some refuse to open an account for anyone living in Myanmar, and at least one British-run bank will close the
account of anyone who informs them that they live here.
New regulations designed to prevent tax evasion (FATCA) cause many international banks to refuse to deal with United States citizens at all. Overseas, only one Thai bank accepts non-resident expatriates. Additionally one offshore bank in the Isle of Man offers expatriates, including Americans, access to accounts, though applicant screening is rather
stringent.
In Myanmar, expatriates can open foreign-currency accounts in three state-owned banks and 14 private banks. But the banking situation here is difficult and may get even more so before it eases and opens up.
Andrew Wood is executive director of Bangkok-based firm Platinum Financial Services Limited.
source: The Myanmar Times
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