Myanmar OK’s use of Thai currency in border trade
Myanmar's military-led administration has agreed to accept Thai baht as official currency in border trade transactions and is planning a similar arrangement for the use of India's rupee, in an effort to reduce the country's reliance on the US dollar in trade.Myanmar began allowing direct currency settlements using the Chinese yuan with its kyat earlier this year, according to the State Administration Council. Payments in Thai baht will be made online in accordance with Myanmar's central bank's regulations, according to a statement.Myanmar's economic crisis worsened after the army deposed Aung San Suu Kyi's elected government in February 2021.Opposition to the military takeover has escalated into armed resistance, which some UN experts have labelled civil war. The country's ability to earn foreign currency has been severely strained as a result of the turmoil, sanctions imposed on the military leadership, and the pandemic. Meanwhile, the kyat's value has plummeted. Myanmar intends to reduce its reliance on the US dollar by up to 70% by expanding direct conversion of other currencies in border trade, according to a statement signed by Maung Maung Ohn, Minister of Information, and Aung Naing Oo, Minister of Investments and Foreign Economic Relations. Thailand is Myanmar's second-largest trading partner after China, with five border crossings.