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,
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...