Myanmar’s recent revocation of foreign exchange
licenses to thousands of businesses has shocked local lawyers,
who have dismissed it as an act of impulse with serious
The Central Bank of Myanmar (CBM) issued a notification last
month requiring, with immediate effect, all commercial entities
to relinquish their licenses in a bid to revive the
country’ ailing currency, the kyat.
But though counsel acknowledge the need to contain the
kyat’s steep depreciation, some have criticised
the impetuousness of the government’s
de-dollarisation approach to the excessive use of the currency
in the country.
"It is a knee-jerk reaction to want to cancel all the
licenses in a way that the central bank hasn’t
taken in account all the implications," said
Simon Makinson, a partner at Allen & Overy in
The mass currency rout triggered by an indiscriminate
preference for the dollar, which has appreciated 25%...