Abstract
Newly available data show that Myanmar once had a high degree of deposit dollarization—the ratio of foreign currency deposits to total deposits at 45.5% in 2002. Dollarization in Myanmar or the decentralized holding of foreign exchange by residents, however, could be attributed to the acquired practices of foreign trade settlement procedures, which have evolved during the period of strict administrative controls. This differs from asset substitution or currency substitution in the other transitional countries of Southeast Asia. In this regard, de-dollarization policy in Myanmar should incorporate the establishment of convenient channels for foreign trade settlements .
The views expressed in this paper are those of the authors, and not necessarily those of the organizations with which they are affiliated.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsReferences
International Monetary Fund (IMF). 2013. Myanmar: 2013 Article IV consultation and first review under the staff-monitored program. IMF Country Report No. 13/250. Washington, DC: International Monetary Fund.
Kubo, K. 2013. Myanmar’s two decades of partial transition to a market economy: A negative legacy for the new government. Post-Communist Economies 25 (3): 357–370.
Kubo, K. 2014. Foreign exchange market reform in Myanmar: Achievements and challenges. Journal of Southeast Asian Economies 31 (2): 210–224.
Menon, J. 2008. Dealing with multiple currencies: What options for the transitional economies of Southeast Asia? Journal of the Asia Pacific Economy 13 (2): 131–146.
Myanmar announces period for exchanging abolished FEC with foreign currencies. 2013, March 22. Xinhua News. http://news.xinhuanet.com/english/business/2013-03/22/c_132254083.htm. Accessed 7 Jan 2016.
Myanmar revokes forex licences to control ‘dollarization.’ 2015, October 18. Reuters. http://www.reuters.com/article/myanmar-forex-idUSL3N12I04K20151018. Accessed 7 Jan 2016.
Set Aung, W. 2009. The role of informal cross-border trade in Myanmar. Asia paper. Stockholm: Institute for Security and Development Policy.
Thein, Myat. 2004. Economic development of Myanmar. Singapore: Institute of Southeast Asian Studies.
Turnell, S. 2003. Myanmar’s banking crisis. ASEAN Economic Bulletin 20 (3): 272–282.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2017 The Author(s)
About this chapter
Cite this chapter
Kubo, K., Set Aung (2017). Dollarization in Myanmar?. In: Kubo, K. (eds) Dollarization and De-dollarization in Transitional Economies of Southeast Asia. IDE-JETRO Series. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-57768-5_4
Download citation
DOI: https://doi.org/10.1007/978-3-319-57768-5_4
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-319-57767-8
Online ISBN: 978-3-319-57768-5
eBook Packages: Economics and FinanceEconomics and Finance (R0)