Extension of Reduction Period of Minimum Cash Reserve Ratio at Banks
Under Notification No. 3/2022, the Central Bank of Myanmar ("CBM") has extended the temporary reduction period of the minimum cash reserve ratio at banks to 3% of the total deposits of customers from 30 March 2022 to 31 March 2023. Notification No. 3/2022 repeals CBM Notification No. 19/2021. Click here to access Notification No. 3/2022 (in Burmese).
CBM Eases Cash Withdrawal Restrictions for Certain Businesses
On 1 April 2022, CBM issued an order instructing banks to allow cash withdrawals for factories in industrial zones, businesses and development projects operating under the government budget, as well as for health and religious purposes. As CBM strives to improve the management of cash flows nationally, the banks have been allowed to ease cash withdrawal restrictions subject to specific conditions.
- Factories in industrial zones are allowed unlimited cash withdrawals for employee salaries, as well as a maximum withdrawal of MMK100 million per week for the purchase of raw materials.
- Government departments are allowed a maximum cash withdrawal of MMK100 million per week for training expenses and cash rewards.
- A cash withdrawal of MMK100 million per week is allowed for government projects and logistic expenses of government departments in relation to the regional and rural development projects under government budget.
- Private individuals are allowed a maximum cash withdrawal of MMK10 million per week, subject to the presentation and submission of the required documents to CBM.
