The orders issued by the central bank regarding foreign exchange restrictions these days are very scary. They were asked to convert the foreign currency from the foreign bank accounts of the companies into Myanmar currency. The central bank took it from 1850. When companies have to send money back to foreign companies, they have to buy back the Myanmar money that was deducted at 1,850 for 2,200 from outside. A company’s operating income ranges from tens of thousands to hundreds of thousands of dollars, depending on the size of the company. There are millions. One dollar is already touching one hundred thousand.
When a dollar fluctuates between 200 and 400, the losses faced by companies are more than those of sitting idle. Foreign investment is clear. They just left and there was nothing. They will move to neighboring countries. Local employees will be unemployed because the businesses will leave. Cash flow will slow down again. The economy will fall more. What’s worse is the matter of having to settle for not paying foreign debt. If you don’t pay, you won’t send the goods. If we don’t send goods, what will happen to Myanmar, which is 100% dependent on foreign imports, starting with raw materials? Foreign imports will stop. As a result, there is no output. Medicines imported from abroad food, clothing, fuel and everything else will be scarce. When the number of unemployed increases a lot, everything is expensive and they will starve. As a result of this order, the fallout that will occur is in the next two or three months. If these conditions continue without this plan, the next country after Sri Lanka will be Burma.
