2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Myanmar


2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Myanmar

Fund Relations

(As of December 31, 2019)

Membership Status: Joined on January 3, 1952; Article XIV.

General Resources Account:

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SDR Department:

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Outstanding Purchases and Loans: None

Latest Financial Arrangements:

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Overdue Obligation and Projected Payments to the Fund1 (SDR Million; based on existing use of resources and present holdings of SDRs):

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When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.

Implementation of HIPC Initiative: Not Applicable

Implementation of Multilateral Debt Relief Initiative (MDRI): Not Applicable

Implementation of Catastrophe Containment and Relief (CCR): Not Applicable

Exchange Rate Arrangement

The de jure exchange rate arrangement is classified as managed float, and the de facto exchange rate regime is classified as other managed, effective April 20, 2018. In 2018, the CBM made progress in allowing market forces to play a bigger role in determining the exchange rate. The FX reference rate largely followed a formula consisting of a weighted average of FX interbank and bank-customer market rates, with occasional small deviations. The CBM also abolished the trading band (reference rate +/- 0.8 percent) in August 2018. The CBM issued on February 4, 2019, a formal regulation announcing the transaction-based exchange rate, as the new reference rate. The CBM reserves the right to intervene to moderate excessive exchange rate volatility in the foreign exchange market.

Myanmar continues to avail itself of transitional arrangements under Article XIV, although it has eliminated all Article XIV restrictions. Myanmar has made significant progress toward satisfying Article VIII obligations, most recently by implementing a new auction mechanism and clear internal guidelines that remove the MCP which arose from the previous multi-price foreign currency auction. Myanmar does not engage in multiple currency practices or maintain exchange restrictions on payments and transfers for current international transactions, except for restrictions imposed solely for reasons of international or national security that have been notified to the Fund pursuant to Decision No. 144.

Article IV Consultation

Myanmar is on the standard 12-month Article IV consultation cycle. The last Article IV consultation discussions were conducted on December 5–19, 2019 in Yangon and Nay Pyi Taw. The Executive Board concluded the 2019 Article IV consultation on Feb 28, 2020.

Technical Assistance

Myanmar is one of the largest recipients of IMF technical assistance (TA). Delivery is through a mix of resident advisors; regional advisors based in the IMF Capacity Development Office in Thailand (CDOT) and short-term HQ and expert missions. The key areas of focus are:

  • Central Banking: a resident foreign exchange advisor, a resident advisor on accounting and internal audit and a monetary operations advisor based in CDOT provided hands-on training and frequent responsive advice, supported by HQ missions. In addition, i the CBM is now being assisted by a resident financial management advisor to strengthen the CBM’s accounting framework and systems.

  • Financial Sector Supervision: work in this area is led by a resident advisor in Yangon supported by HQ and expert missions. AML/CFT TA is delivered by HQ staff and short-term expert.

  • Revenue Reform: a resident tax administration advisor is supported by HQ and expert missions aimed at modernizing the Internal Revenue Department (IRD), including to support the preparation of a Medium-Term Revenue Strategy. A resident custom advisor supports the Myanmar Customs Department (MCD) on compliance measurement, management control, risk Management and the development of MCD audit and anti-smuggling strategies. Work on tax policy is delivered through HQ missions, and include the preparation of the new income tax law (LEG) and modernization of the tax regime for extractive industries.

  • Public Financial Management: the focus is on capacity development of the Treasury Department, following its establishment in September 2014, which was led by PFM advisors (two) based in CDOT and supported by HQ and expert missions. Work on public investment management, budgeting and fiscal risks from PPPs is delivered through HQ missions.

  • Statistics: the work plan in this area has been developed following a multi-sector diagnostic mission in 2013. As a result, external sector and government finance statistics advisors (two) have taken up duties in CDOT and expert visits continue to assist in the development of price statistics. A rebased CPI was released in August 2016. Assistance in developing GDP statistics was provided during 2019.

  • Macroeconomic Management: an advisor based in CDOT leads the work on developing a macroeconomic framework and other analytical tools and providing customized macroeconomic courses and workshops, which is closely integrated with the broader IMF training program.

In all areas, the IMF coordinates closely with other development partners. In the financial sector, the IMF team has assisted the Central Bank of Myanmar in developing a framework for coordination of international technical assistance.

Resident Representative

Mr. Neil Saker has been the Resident Representative of the country and stations in Yangon, since September 2019.

IMF Capacity Development Office in Thailand (CDOT)

Mr. David Cowen, Director, has headed the office since September 2015. CDOT (formerly TAOLAM) provides technical assistance and training in macroeconomic management and statistics, supported by resources from the Government of Japan and the Bank of Thailand. Currently, seven TA advisors are based in the office, covering public financial management (PFM), monetary and foreign exchange operations, macroeconomic management, government financial statistics, and external sector statistics for Myanmar, as well as Cambodia, Lao P.D.R., and Vietnam under most of CDOT’s capacity development projects.

Myanmar: Key Technical Assistance by the Fund During 2019

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Relations with Other International Financial Institutions

World Bank: http://www.worldbank.org/en/country/myanmar

Asian Development Bank: https://www.adb.org/countries/myanmar/main

Main Websites of Data

Central Bank of Myanmar (https://www.cbm.gov.mm)

Government Securities

Deposit Auction

Central Statistical Organization (www.csostat.gov.mm)

Consumer Price Index

Myanmar Statistical Information Service (www.mmsis.gov.mm)

National accounts

Population census

Labor and employment

Socioeconomic survey

Household income and expenditure survey

Ministry of Commerce (https://www.commerce.gov.mm)

Foreign trade

Directorate of Investment and Company Administration (https://www.dica.gov.mm/en)


Statistical Issues

As of December 31, 2019

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Myanmar: Table of Common Indicators Required for Surveillance

(As of December 31, 2019)

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Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A); Irregular (I); Not Available (NA).

Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.

Officially determined, including discount rates, money market rates, rates on treasury bills, notes, and bonds.

Foreign, domestic bank, and domestic nonbank financing.

The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds), state and local governments, and State economic enterprises (SEEs).

Including currency and maturity composition.

Includes external gross financial asset and liability positions vis-à-vis nonresidents.