Myanmar’s forward contract law lacks substance

Author: Brian Yap | Published: 26 Jan 2016

Myanmar’s introduction of forward contracts for currency hedging has been met with scepticism by counsel in the country.

Sumitomo Mitsui Banking Corp, one of the nine banks licensed to open foreign branches in the country, was reported on January 20 to have been selected as the first financial institution to offer forward contracts. Forwards let one party lock in a specific exchange rate in advance.

But counsel in Myanmar point to confusion surrounding the development. With new laws in the pipeline, the changes are unlikely to be implemented under the...