Date: 10 November 2026

Issued by: Central Bank of Myanmar

Overview

The Central Bank of Myanmar ("CBM") has recently introduced two significant foreign exchange measures aimed at facilitating international trade, improving foreign currency liquidity, and enhancing the efficiency of export and import transactions.

  The key developments are:

1. Extension of the retention period for usable export earnings from 30 days to 45 days; and
2. Introduction of a phased foreign currency payment mechanism (30%–40%–30%) for eligible import transactions.

Together, these measures provide businesses with greater flexibility in managing foreign currency while maintaining regulatory oversight of Myanmar's foreign exchange market.

I. Extension of Retention Period for Export Earnings

Under Section 38(b) of the Foreign Exchange Management Law, exporters are required to repatriate export proceeds into foreign currency accounts maintained with banks in Myanmar within the prescribed period.

Previously, pursuant to CBM Letter No. FE-1/PaKa/1956 dated 16 August 2022, exporters were permitted to retain the usable portion of export earnings in their foreign currency accounts for up to 30 days.

The CBM has now extended the allowable retention period to 45 days.

Key Highlights

• Extended Retention Period
  • Retention period increased from 30 days to 45 days.
• Greater Operational Flexibility
  • Provides exporters with additional time to arrange import licence applications and outbound   foreign currency payments.
• Improved Foreign Exchange Circulation
  • Supports smoother foreign currency utilisation between export receipts and import payments.
• Trade Facilitation
  • Intended to promote the continued development of Myanmar's trade sector.

Implications for Exporters

• More time to utilise export proceeds before mandatory conversion or utilisation requirements apply.
• Improved cash flow planning for import-related transactions.
• Greater flexibility in managing foreign currency exposure.
• Reduced operational pressure when coordinating import licensing and overseas payments.

    II. Introduction of Phased Foreign Currency Payments for Imports

The CBM has also introduced a phased payment mechanism for the sale of foreign currency for eligible     import transactions.

The new framework is intended to improve access to foreign currency, reduce payment delays to     overseas suppliers, and prioritise foreign currency allocation for genuine trade requirements.

Payment Structure

Key Highlights

• Advance Foreign Currency Allocation
  • Importers may access foreign currency progressively throughout the import process.
• Document-Based Disbursement
  • Each installment is released upon submission of specified supporting documents.
• Improved Liquidity Management
  • Businesses are no longer required to obtain the entire foreign currency requirement at one time.
• Support for Essential Imports
  • Prioritises foreign currency allocation for qualifying import transactions involving essential goods.

Implications for Importers

• Better cash flow management throughout the import cycle.
• Reduced financing burden arising from large upfront foreign currency purchases.
• Improved ability to negotiate payment terms with overseas suppliers.
• More efficient procurement of raw materials and essential goods.

Combined Legal and Commercial Impact

These two CBM measures should be considered together when planning international trade transactions.

    Foreign Currency Management

Exporters now have a longer period to retain export proceeds, while importers benefit from staged access to foreign currency, allowing more efficient treasury management.

    Cash Flow Planning

Businesses engaged in both export and import activities may better align foreign currency inflows with payment obligations, potentially reducing short-term financing requirements.

    Trade Facilitation

The measures are intended to facilitate international trade by reducing payment delays and improving operational flexibility for businesses engaged in cross-border transactions.

    Regulatory Compliance

Businesses should continue to comply with all applicable requirements under the Foreign Exchange Management Law, CBM notifications, and other relevant regulatory requirements when managing foreign currency transactions.

    Our Comments

The CBM's latest measures demonstrate a practical approach to improving Myanmar's foreign exchange administration while maintaining regulatory oversight.

The extension of the export earnings retention period provides exporters with greater operational flexibility, while the phased import payment mechanism is expected to ease liquidity constraints for importers and facilitate smoother international trade transactions.

Companies engaged in cross-border trade should review their treasury management practices, payment schedules, and documentary compliance procedures to maximise the benefits of these regulatory changes while ensuring continued compliance with Myanmar's foreign exchange framework.

How We Can Assist

Our firm provides comprehensive legal and regulatory support in relation to:

• Foreign Exchange Management Law compliance
• Export and import regulatory advisory
• Foreign currency transaction structuring
• Import licence and trade regulatory compliance
• Regulatory advice relating to Central Bank of Myanmar requirements
• Commercial contract review for international trade transactions
• Legal and compliance risk assessments for cross-border business operations

SOUTH ASIA CONSULTING