Banks, stock exchange shut down in Myanmar after military coup

All banks across Myanmar temporarily shut down their operations on February 1 following a military coup in the early hours of the same day, local and international media cited a statement by the Myanmar Bankers Association.

Likewise, the Yangon Stock Exchange halted all trading operations on the same day without informing when it planned to restart services.

The closures were a result of Internet and telecommunication disruptions, which some reports attributed to the military “limiting” data and mobile network connections.

The country’s de-facto leader, state counsellor and National League for Democracy Party head Aung San Suu Kyi and other senior figures from the party have been detained in an early morning raid before the Myanmar army declared a state of emergency which will last for at least one year.

Foreign investors are not amused

Economists warned that the coup and the respective disruption of businesses will have a severe impact on the recovery of an economy already battered by the coronavirus crisis, particularly in terms of foreign direct investment, trade and the a potentially recovering tourism sector.

Chinese companies, which have a large presence in Myanmar, have expressed concerns about the coup d’etat and its possible impact on trade relations.

China’s embassy in Myanmar issued a notice urging Chinese nationals and companies to monitor developments and be aware of risks, obey local laws, stay at home and avoid taking part in any political activities or large gatherings.

China is Myanmar’s largest trading partner with $12 billion worth of goods traded in fiscal year 2019/20, accounting for a third of the country’s international trade at, and its second-largest investor after Singapore. Exports to China had already been hit by the Covid-19 pandemic and the coup may have a further impact on trade and investments, according to members of the business community.

Economic growth figures will likely have to be revised

Myanmar’s economy has been among the fastest-growing in the Asia-Pacific region in the recent past. But as a result of the fallout of the Covid-19 pandemic, the country’s economic growth was estimated to have slowed to 1.7 per cent in fiscal year 2019/20, from 6.8 per cent in the prior fiscal year, as per the World Bank. 

In terms of gross economic product growth, figures for the country might have to be revised. Originally, Myanmar’s economic growth has been forecast to remain subdued at two per cent in the fiscal year 2020/21, according to the World Bank. But it could still be worse, depending on the military’ agenda, observers noted.



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All banks across Myanmar temporarily shut down their operations on February 1 following a military coup in the early hours of the same day, local and international media cited a statement by the Myanmar Bankers Association. Likewise, the Yangon Stock Exchange halted all trading operations on the same day without informing when it planned to restart services. The closures were a result of Internet and telecommunication disruptions, which some reports attributed to the military “limiting” data and mobile network connections. The country’s de-facto leader, state counsellor and National League for Democracy Party head Aung San Suu Kyi and other senior...

All banks across Myanmar temporarily shut down their operations on February 1 following a military coup in the early hours of the same day, local and international media cited a statement by the Myanmar Bankers Association.

Likewise, the Yangon Stock Exchange halted all trading operations on the same day without informing when it planned to restart services.

The closures were a result of Internet and telecommunication disruptions, which some reports attributed to the military “limiting” data and mobile network connections.

The country’s de-facto leader, state counsellor and National League for Democracy Party head Aung San Suu Kyi and other senior figures from the party have been detained in an early morning raid before the Myanmar army declared a state of emergency which will last for at least one year.

Foreign investors are not amused

Economists warned that the coup and the respective disruption of businesses will have a severe impact on the recovery of an economy already battered by the coronavirus crisis, particularly in terms of foreign direct investment, trade and the a potentially recovering tourism sector.

Chinese companies, which have a large presence in Myanmar, have expressed concerns about the coup d’etat and its possible impact on trade relations.

China’s embassy in Myanmar issued a notice urging Chinese nationals and companies to monitor developments and be aware of risks, obey local laws, stay at home and avoid taking part in any political activities or large gatherings.

China is Myanmar’s largest trading partner with $12 billion worth of goods traded in fiscal year 2019/20, accounting for a third of the country’s international trade at, and its second-largest investor after Singapore. Exports to China had already been hit by the Covid-19 pandemic and the coup may have a further impact on trade and investments, according to members of the business community.

Economic growth figures will likely have to be revised

Myanmar’s economy has been among the fastest-growing in the Asia-Pacific region in the recent past. But as a result of the fallout of the Covid-19 pandemic, the country’s economic growth was estimated to have slowed to 1.7 per cent in fiscal year 2019/20, from 6.8 per cent in the prior fiscal year, as per the World Bank. 

In terms of gross economic product growth, figures for the country might have to be revised. Originally, Myanmar’s economic growth has been forecast to remain subdued at two per cent in the fiscal year 2020/21, according to the World Bank. But it could still be worse, depending on the military’ agenda, observers noted.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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