Visitors to Myanmar should face action for using foreign currency, according to the Central Bank of Myanmar (CBM) Deputy Governor.

According to reports, U Bo Bo Nge used a recent meeting of the House of Nationalities to outline CBM's plans to raise the value of the kyat by making Myanmar currency use compulsory for all transactions across the country.

Related reading: Central Bank Myanmar takes action to stabilise kyat

Under the Foreign Exchange Management Law, ordinary account holders are only permitted to use foreign currency in special cases approved by the CBM.

While the government has allowed the opening of foreign exchange centres across the country, cash payments involving foreign currency are being used at hotels, restaurants, souvenir shops, as well as at private schools established by foreign investors.

Mr Bo Bo Nge also pointed to the use of the dollar in land lease and joint venture investments conducted through ministeries.

His remarks come three months after the CBM sold a record USD 4 million to local and private banks in an effort to ground the exchange rate.

The CBM also announced the removal of a +/- 0.8 percent trading band on the exchange of kyat against the dollar in a bid to curb continued depreciation.

The USD exchange rate rose unprecedentedly to KI,1,630 per dollar in the country's domestic market during September but has since fluctuated between  KI,1,500 and KI,1,600 per dollar.

Sources: Central Bank of Myanmar, Xinhuanet

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