Enhancing financial regulation can be achieved through coordination

Myanmar’s economic growth rate was 5.9 percent in FY 2016-2017 and 6.8 percent in FY 2017-2018. The reason for the growth was due to the increase in agriculture sector production and exports, along with an increase in industry sector garment exports and improvements in banking services.
The annual inflation rate and average inflation rate, calculated based upon prices in 2012 as a base year, was 7 percent and 6.8 percent for FY 2016-2017 and 5.4 percent and 4 percent for FY 2017-2018.
The annual inflation rate decreased significantly, due to the exceptionally stable foreign exchange rate, the decrease in CBM’s funding of the government budget deficit, and stability in consumer product prices. Although the inflation rate decreased significantly, it still remains high, in comparison to neighboring ASEAN countries.
Meanwhile, businesses persons in real estate and other sectors have noted that they are facing obstacles in repaying loans to banks, as financial regulation nearly came to a halt. This reflects the real estate sector not seeing brighter prospects, though the country’s economy is rising.
Still, we are confident that the Central Bank of Myanmar will ensure proper financial regulation in the economic system through its coordination with the banking sector and businesses.
During FY 2016-2017, the exchange rate of the US dollar was at its lowest at K 1,159, and highest at K 1,434. Fluctuations in the daily exchange rate remained within one percent. In FY 2017-2018, the exchange rate of the US dollar was the lowest at K 1,328, and highest at K 1,367. Overall, the daily exchange rate remained within 0.5 percent.
These achievements can be seen as the fruits of reforms that the country has undertaken, including opening up retail and wholesale trade to foreign investment; along with inviting the participation of investors.
Myanmar’s new Sustainable Development Plan-MSDP is committed to nurturing an enabling environment— helping stimulate foreign and domestic investment, increasing access to develop financing, and strengthening regional and global partnerships.
Myanmar is also working to develop a more favourable, friendly, and predictable enabling environment which offers investors a fair and level playing field, and thus attracts responsible investment and creates jobs, opens up new opportunities, sustains growth, and spreads prosperity to all.
A wide range of new and exciting investment projects are now in the pipeline.
Hence, we are confident that with future investments, which will serve as a major driver of Myanmar’s economy looking forward, it will enhance the financial regulation of the country.

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