Myanmar to accept renminbi for trade, investment settlements with China
Myanmar’s military government will begin accepting China’s currency, the renminbi, as official settlement currency for trade with and investments from its northern neighbor, Reuters cited from a government statement issued by Myanmar’s ministries of information and investment.
The move is mainly aimed at restarting idle joint projects and forging closer economic ties with Beijing, which has supported Myanmar financially and with Covid-19 vaccines during the pandemic.
The statement also identified infrastructure projects with China that it said were a “major priority” for Myanmar’s economic revival, including plans for railways and ports.
Chinese state media outlet Global Times previously reported Myanmar’s renminbi plans, saying the move is aimed to address the country’s economic turmoil and the shortage of foreign currencies.
Severe economic crisis after military coup
The military coup has thrown Myanmar in a severe economic crisis and triggered sanctions by the US, which – in addition to a number of foreign investors leaving the country – has pushed it closer to China as trade and investment partner.
In its statement, the Myanmar officials said the pilot currency project would “further improve bilateral cooperation” with Beijing and “substantially improve border trade, “especially for agricultural products.
Government expects modest economic growth
They further noted that Myanmar’s economic downturn this year was “much less severe than forecasts of some international economists” and that the country expects to record “modest growth” in its shortened fiscal year 2021/22 as the economy would gradually recover.
In contrast to the optimistic outlook by the military government, the United Nations estimated that nearly half the population of Myanmar, once one of Asia’s fastest growing economies for a short period, will be pushed below the poverty line next year due to twin impacts of the coup and the Covid-19 pandemic, while the World Bank and the International Monetary expect Myanmar’s gross domestic product to have shrunk by 18 per cent in the 2020/21 fiscal year ended September 31 and is likely to contract further.
[caption id="attachment_37931" align="alignleft" width="300"] Myanmar-China border in Shan state[/caption] Myanmar’s military government will begin accepting China’s currency, the renminbi, as official settlement currency for trade with and investments from its northern neighbor, Reuters cited from a government statement issued by Myanmar’s ministries of information and investment. The move is mainly aimed at restarting idle joint projects and forging closer economic ties with Beijing, which has supported Myanmar financially and with Covid-19 vaccines during the pandemic. The statement also identified infrastructure projects with China that it said were a “major priority” for Myanmar’s economic revival, including plans for railways and ports....
Myanmar’s military government will begin accepting China’s currency, the renminbi, as official settlement currency for trade with and investments from its northern neighbor, Reuters cited from a government statement issued by Myanmar’s ministries of information and investment.
The move is mainly aimed at restarting idle joint projects and forging closer economic ties with Beijing, which has supported Myanmar financially and with Covid-19 vaccines during the pandemic.
The statement also identified infrastructure projects with China that it said were a “major priority” for Myanmar’s economic revival, including plans for railways and ports.
Chinese state media outlet Global Times previously reported Myanmar’s renminbi plans, saying the move is aimed to address the country’s economic turmoil and the shortage of foreign currencies.
Severe economic crisis after military coup
The military coup has thrown Myanmar in a severe economic crisis and triggered sanctions by the US, which – in addition to a number of foreign investors leaving the country – has pushed it closer to China as trade and investment partner.
In its statement, the Myanmar officials said the pilot currency project would “further improve bilateral cooperation” with Beijing and “substantially improve border trade, “especially for agricultural products.
Government expects modest economic growth
They further noted that Myanmar’s economic downturn this year was “much less severe than forecasts of some international economists” and that the country expects to record “modest growth” in its shortened fiscal year 2021/22 as the economy would gradually recover.
In contrast to the optimistic outlook by the military government, the United Nations estimated that nearly half the population of Myanmar, once one of Asia’s fastest growing economies for a short period, will be pushed below the poverty line next year due to twin impacts of the coup and the Covid-19 pandemic, while the World Bank and the International Monetary expect Myanmar’s gross domestic product to have shrunk by 18 per cent in the 2020/21 fiscal year ended September 31 and is likely to contract further.
