YANGON, Nov. 21 (Xinhua) -- The Central Bank of Myanmar (CBM) is making efforts to raise the value of kyat and prevent dollarization by making use of Myanmar currency compulsory for all transactions across the country to make the kyat stronger and to curb illegal hoarding of money, CBM Deputy Governor U Bo Bo Nge said.
U Bo Bo Nge made the remarks at a session of the House of Nationalities (Upper House) Tuesday when asked, the official Global New Light of Mynamar reported Wednesday.
U Bo Bo Nge recalled that the government has allowed the opening of foreign currency exchange counters across the country.
However, it has been found that cash payments are being made using foreign currencies at hotels, restaurants, private schools established by foreign investors, flat rentals to foreigners and souvenir shops.
He pointed out even in the ministries, U.S. dollar is being used for land lease and joint venture investments.
He quoted the foreign exchange management law as saying that ordinary account holders are permitted to pay only in Myanmar currency and not foreign currency unless permitted by the CBM for special case.
The CBM deputy governor warned of taking action against those who do not abide by the prescribed law.
The U.S. dollar exchange rate once rose unprecedentedly to 1,630 kyats per U.S. dollar in the country's domestic market in mid-September but fluctuated between 1,500 kyats and 1,600 kyats per U.S. dollar in the following months until now.
The authorities are investigating illegal currency trading which is manipulating the foreign currency market in the country.
Over a recent period, the Central Bank of Myanmar (CBM) announced 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.