YANGON, Aug. 30 (Xinhua) -- The Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) has submitted a plan to the government for stabilizing the rising exchange rate, the official Global New Light of Myanmar reported Thursday.
The four-point plan, submitted to State Counselor Aung San Suu Kyi during a recent meeting with local business leaders in Nay Pyi Taw, was outlined as promoting export sector, investment, import substitution and reducing reliance on the U.S. dollar.
Suggestions also included reviewing the entire export supply chain, applying demand-based agricultural policy, earliest implementation of banks' support services towards export, providing tax incentives to potential export products, public-private partnership towards effective development of export and earliest formation of National Export Promotion Council.
Moreover, the government was urged to let foreign banks bring in foreign capital to expand their businesses in the country.
UMFCCI called on the government to reduce reliance on U.S. dollar by strictly forbidding pricing, trading and payments by dollar in the country and conduct trading with currencies of neighboring countries as an alternative.
Over a recent period, U.S. dollar exchange rate rose sharply to over 1,500 Kyats against 1 U.S. dollar in Myanmar domestic market, following an announcement of the Central Bank of Myanmar (CBM) about removing trading band of +/- 0.8 percent on exchange of Myanmar Kyat against U.S. dollar to control market fluctuation in the wake of continuous kyat depreciation.
Some businessmen forecast that prices of commodities and goods could rise due to the high exchange rate in local market.
The exchange rate in the international market is forecast to continuously jump.
Meanwhile, the CBM is monitoring the foreign currency market to prevent price manipulation, a key reason for exchange rate destabilization.
Also, the CBM has been selling about 100,000 U.S. dollars' notes daily to private banks to cope with demand, aiming to stabilize currency exchange rate in the country.