Regime's Foreign Currency Restrictions Push Myanmar Towards Bankruptcy

The new restrictions on US dollars introduced last week by the Central Bank of Myanmar (CBM) have come as a crippling blow to businesses already struggling in an economic recession resulting from post-coup political turmoil and the COVID-19 pandemic.

The new restrictions saw the bank revoking the exemption from mandatory currency conversion given to companies with a minimum 10 per cent foreign ownership.

In April, the CBM ordered financial institutions to convert foreign currency earned by its customers into kyat within one business day at an official exchange rate of 1,850 kyats to the US dollar, as the military regime was desperate for US dollars. In June, following requests and criticisms, the bank exempted companies that are 10 per cent or more owned by overseas entities from the mandatory currency conversion.

At the same time, the bank has also ordered companies and individual borrowers to suspend repayments of foreign loans, both on the interest and the principal loan. 

Myanmar Junta Airstrikes Kill Two, Injure Seven near Thai Border

 

Myanmar junta’s indiscriminate airstrikes have killed two civilians and injured seven others, including children, in two Karen villages near the Thai border and displacing hundreds of civilians.

A Thay Baw Boe villager in southern Myawaddy Township, Karen State, said two bombs from a junta fighter jet hit on Friday evening. One hit the village head’s house and killed two of his relatives, who were in their 20s, and severely injured three other relatives, including his father. The other did not explode.

Three other houses were also destroyed.

The area is near the junta’s strategic Ukayit Hta outpost, which has been attacked by resistance forces and Karen armed groups.

In response to the attacks, the regime has launched massive airstrikes indiscriminately for a week and its planes crossed into Thai airspace last Thursday. Both sides have reportedly suffered casualties.

Since Friday, hundreds of villagers from Thay Baw Boe have crossed the Thai border, according to a villager said.

“Almost everyone fled to avoid the regime’s bombing,” he said, adding that the displaced are relying on handouts.

On Saturday the regime conducted another airstrike on nearby Thaw Baw Boe village, injuring four, including three children, who were fleeing their village, according to the Karen Human Rights Group.

The NGO said more than 300 villagers are seeking refuge in Thailand.

The displaced include newborn babies, elderly people and pregnant women and the civilians need emergency support, such as food, materials for shelter and hygiene products, it added.

Myanmar Junta Intensifies Arson Attacks in Resistance Strongholds

 

Myanmar’s junta has intensified its attacks in the resistance strongholds of Sagaing and Magwe regions by razing around 100 villages this month.

The Irrawaddy estimates that more than 7,000 houses in 97 villages were burned down in the two regions so far this month