The document discusses financial and banking reforms in Myanmar. It provides an overview of the country's geography, demographics, and macroeconomic indicators. It outlines reforms that have been implemented, including liberalizing the banking sector, amending relevant laws, reducing interest rates, and unifying exchange rates. It notes threats such as special interest groups and calls for continued modernization of the financial system and ensuring stability and transparency.

1. CENTER FOR MANAGEMENT TECHNOLOGY
2ND MYANMAR INVESTMENT SUMMIT
FINANCIAL AND BANKING REFORMS IN MYANMAR
YANGON, UNION OF THE REPUBLIC OF MYANMAR
OCTOBER 17, 2012
10/8/2012 1

2. FINANCIAL AND BANKING REFORMS IN MYANMAR
Presented by
Naw Eh Hpaw
Deputy Director General
Central Bank of Myanmar
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3. Myanmar
Myanmar is situated in South East Asia.
An area of 676,577 sq km with a coast line of 2,832 km and the
Estimated Population is about 59.13 million.
The terrain ranges from the arid plains to cool, sprawling
hills, snow-capped mountains, white-sand beaches, lush
farmland, hidden valleys and thick virgin forest.
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4. Geographical Proximity and
Strategic Location
Demographic Bonus
On the Track for Economic
Recovery and Development
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5. Macroeconomic Indicator
The growth rate of the real GDP
 5.3 % in FY 2011/12 and projected at
 6.25% in FY 2012/13
Total exports by 28.1 % to US $ 8.42 billion
Inflation declined to 4 % in FY 2011/12 and is
projected to 5.75 % in FY 2012/13
 The national poverty incidence
 fallen from 32 % to 26 %
 four million people escaped from poverty
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6. Macroeconomic Policy Priority
It is said that A historic opportunity to jump-
start the development process and to boost the
living standards but …….A long way to go
The government has adopted appropriate
policies and plans in the areas which call for top
priority
 The five-year short-term plan starting from
FY 2011/12 to FY 2015/16
 Modernization of the financial system
 Monetary Policy
 Fiscal Policy
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7. Liberalization in the Financial Sector
CBM encouraged the establishment of the four
new private banks as well as the activities of the
existing private commercial banks
19 domestic private banks with more than 300
branches all over the country and all the banks
are in full swing now
Reintroduced an interbank foreign exchange
market although it has been about 50 years
since this market was last allowed to exist
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8. Liberalization in the Financial Sector
( Continued )
Local private banks have been allowed to
perform both at home and abroad
The remittance of currency from Myanmar
citizens working overseas becomes
much easier and more reliable than before
Upgrading the payment system and introduction
of online banking system
Unifying the exchange rates while easing the
exchange-rate restrictions on current payments
and transfers
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9. A well-defined legal framework
Amendments to the existing laws
 Central Bank of Myanmar Law 1990
 Financial Institutions of Myanmar Law 1990,
All these amended laws and regulations
concerned are to be enacted by the parliament
The Foreign Exchange Management Law was
enacted by the Parliament on August 10, 2012
Establishment of foreign exchange business and
also the realistic managed float exchange rate
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10. Monetary policy
CBM has implemented a prudent monetary
policy framework
CBM is to be given the full operational
autonomy
Interest rate policy
Reduced the central bank discount rate from 12 % to
10 % starting since January 1, 2012.
Moderated the interest rates for Government Treasury
bonds
An incentive for the purchases of treasury bonds,
which is the essential to phase out deficit monetization
and to reduce inflation further
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11. Fiscal Policy
• Reduce the unproductive expenditure but also
prioritize the policy toward social responsibility
such as education, health and social protection
• Fiscal decentralization process and sub-national
budgets was first separated from the Union
budget
• Appropriate reforms to tax policy and tax
administration
• Fiscal deficit was 4.8 % in FY 2011/12
and is also projected at 3.8 % for FY 2012/13
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12. Threats and Challenges
1) Special Interest Groups
2) Imbalance in the Community
3) Transparency, Accountability and
Reliability
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13. Economic Outlook
• Modernizing Myanmar’s economy has been looked
upon as a process of removing impediments to
growth
• By encouraging all inclusive political process as well
as enabling economic environment
• Reassuring the financial system development and
liberalizing trade and foreign direct investment
further
• Delivering the expectations with sustainable
development by consolidating the macroeconomic
stability measures such as the exchange rate
unification scheme, the attempt to fiscal discipline
and a series of liberalizing policies.
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14. 10/8/2012 14

15. 10/8/2012 15

16. Inflation
GDP (FY 2011-12) US$ 54.03 billion (MMK 45,928,000 million )
GDP (PPP) US$ 82.72 billion (MMK 45,928,000 million )
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17. 10/8/2012 17

18. % per annum
10
30
40
60
70
-10
20
50
0
10/8/2012
2000 Jan
2000 Jul
2001 Jan
2001 Jul
2002 Jan
2002 Jul
2003 Jan
2003 Jul
2004 Jan
2004 Jul
2005 Jan
2005 Jul
2006 Jan
2006 Jul
Source: IMF, International Financial Statistics
2007 Jan
2007 Jul
2008 Jan
2008 Jul
2009 Jan
Spread
2009 Jul
Deposit Rate
Lending Rate
2010 Jan
2010 Jul
Trends of Interest Rates in Myanmar:
2011 Jan
Consumer Price Index
2011 Jul
Spread Reduced to 3% from 5% in Sep 2011
18

19. Trade Balance in Myanmar (FY 1991-2001)
Fiscal Year Export Imports Trade Balance
1991-92 430.6 842.3 -411.7
1992-93 590.7 1,010.2 -419.5
1993-94 695.6 1,301.7 -606.1
1994-95 917.4 1,487.8 -570.4
1995-96 934.4 1,830.8 -896.4
1996-97 929.9 1,945.8 -1,015.9
1997-98 1,010.8 2,160.4 -1,149.6
1998-99 1,113.1 2,431.4 -1,318.3
1999-00 1,353.4 2,365.7 -1,012.3
2000-01 1,838.2 2,064.6 -226.4
2001-02 2,484.8 2,304.4 180.4
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20. Trade Balance in Myanmar (FY 2002-2010)
Fiscal Year Export Imports Trade Balance
2002-03 2,727.5 2,101.5 626.0
2003-04 2,780.8 1,998.7 782.1
2004-05 2,902.4 1,805.0 1,097.4
2005-06 3,531.1 1,815.1 1,716.0
2006-07 5,202.7 2,687.6 2,515.1
2007-08 6,363.4 3,076.3 3,287.1
2008-09 6,735.8 4,089.0 2,646.8
2009-10 7,568.6 4,186.3 3,382.3
2010-11 8,856.0 6,403.7 2,452.3
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21. Trade Balance in Myanmar (FY 2002-2010)
(Kyats in million )
10,000.0
9,000.0
8,000.0
7,000.0
6,000.0
5,000.0 Export
4,000.0 Imports
Trade Balance
3,000.0
2,000.0
1,000.0
0.0
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22. • System of National Accounts
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23. 10/8/2012 23

24. အသက် (၁၅) နှစ်နှင်အထက် လုပ်သားအင်အားပါဝင်မှုနှုန်း
့
(၁၉၇၃ ခုနှစ- ၂၀၀၇ ခုနှစ)
် ်
ရာခိုင်နှုန်း
90.0
80.0
70.0 ၁၉၇၃
60.0
၁၉၈၃
50.0
40.0
၂၀၀၁
30.0 ၂၀၀၇
20.0
10.0
0.0
၁၅-၁၉ ၂၀-၂၄ ၂၅-၂၉ ၃၀-၃၄ ၃၅-၃၉ ၄၀-၄၄ ၄၅-၄၉ ၅၀-၅၄ ၅၅-၅၉ ၆၀-၆၄ ၆၅+
အသက်
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25. 70
60 62.8 64 63.9
58.2
50
40
30 32.5
27.2
24.3 24.9
20
10 12.9
11.1
8.9 9.3
0
1973 1983 2001 2007 1973 1983 2001 2007 1973 1983 2001 2007
လယ်ယာသားငါးကဏ္ဍ စက်မှုကဏ္ဍ ဝန်ဆောင်မှုကဏ္ဍ
10/8/2012 25

26.  ၂၀၁၁ ခုနစ်၊ ဇူလငလကုန်အထိ နိုင်ငံပပါင်း(၃၁) နိုင်ငံမှလုပငန်း စုစပပါင်း
ှ ို ် ် ု
(၄၅၄)ခု ရင်းနှီးှမုပ်နှလျှက်ရိှရာ အပမရိကန် ပေါ်လာ သန်းပပါင်း
ံ
(၃၆,၀၇၁.၈၈၈) ရှပါ သည်။ိ
 ရင်းနှီးှမုပ်နှံမှုကဏ္ဍ(၁၂)ခုတင် လျှပစစ်ကဏ္ဍမှ ၄၀.၂၈%၊ ပရနံနှင့်သဘာဝ
ွ ်
ဓါတ်ပငွ့ကဏ္ဍမှ ၃၈.၃%၊ သတ္တ ုကဏ္ဍ မှ ၇.၇၅% တို့ှဖင့် ဦးပောင်လျှက် ရှိပါ
သည်။
 နိုငငံအပနဖင့် တရုတ်ှပည်သ့ူ သမ္မတနိုငငံသည် ၂၆.၆၂% ှဖင့် ပထမ၊ ထိုင်း
် ှ ်
နိုင်ငံသည် ၂၆.၅၃%ှဖင့် ေုတိယ၊ ပောင်ပကာင်သည် ၁၇.၄၉% ှဖင့် တတိယ
ပနရာတွငရပါသည်။
် ှိ
 အာေီယနုငငံများမှ
ံ ိ ် ရင်းနှီးှမုပ်နှမပမာဏမှာ
ံ ှု အပမရိကန်ပေါ်လာ
သန်းပပါင်း (၁၂၇၇၅.၆၅၆) ရှပါသည်။ ိ
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