Mizzima
The Myanmar Rice Federation (MRF) said that 70% of the earnings from the export of rice and broken rice would be used only for spending on diesel fuel imports.
The Union of Myanmar Federation of Chamber of Commerce and Industry (UMFCCI) issued its circular in December last year which says that if the exporters import fuel by themselves 70% of their export earnings must be used for fuel import bills from their FE accounts.
The companies which have export earnings in their FE accounts may import fuel and they must be paid from 70% of their export earnings from these FE accounts.
The MRF said that this system was directly connecting exporters and fuel importers which would benefit exports, stability in the fuel market and the exchange rate.
The Central Bank of Myanmar (CBM) under control of the Military Council also sold over US$51 million in the FE market for those who have to use FE for their imports.
The negotiations are underway with exporters for setting the exchange rate and to spend 70% of export earnings from agricultural produce exports such as rice, broken rice, pulses and beans and corn for payments of fuel import bills.
In the open market of FE, which is out of the ambit of CBM, the US dollar exchange rate is stable at around 3,500 Kyats against the dollar currently.
