On 7 January 2026, the Central Bank of Myanmar (“CBM”) announced Notification No. 2/2026 (“Notification”) to further relax the mandatory conversion requirements applicable to export earnings. The revised ratio is effective retroactively from 1 January 2026.
Under the new Notification, the ratio for compulsory conversion of export proceeds has been adjusted from 25%–75% to 15%–85%, according to the directives in Notification No. 12/2022 of the CBM.
Under the revised framework:
- 15% of export earnings must be converted into Myanmar Kyat (MMK) at the CBM reference rate.
- 85% of export earnings may be converted into MMK at the online trading rate.
- This represents a reduction from the previous requirement, which mandated conversion of: 25% at the CBM reference rate; and 75% at the online trading.
Implications for Exporters
- Exporters benefit from greater exposure to market-based exchange rates, potentially improving MMK conversion outcomes.
- The change may enhance foreign currency liquidity management and ease cash flow pressures for export-oriented businesses.
- Companies should review their foreign exchange conversion practices and banking arrangements to ensure compliance with the revised ratios as of 1 January 2026.
The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.
