Discusses the most common methods of payment, such as open account, letter of credit, cash in advance, documentary collections, factoring, etc. Includes credit-rating and collection agencies in this country. Includes primary credit or charge cards used in this country.
Last Published: 9/10/2019
Exporters and importers in Myanmar transfer money into and out of the country by Letter of Credit (L/C) or Telegraphic Transfer (TT) using foreign currency accounts in any local bank with a license for international banking services. Since 2012, state-owned and private banks in Myanmar started offering L/Cs to facilitate international trading activities. State-owned banks typically require the importer to make a full payment deposit before issuing an L/C whereas private banks require a smaller percentage deposit. Private bank L/Cs are generally preferred by Myanmar importers as they are processed faster and require less detailed information regarding the nature of the transaction than state-owned banks. Currently, the majority of banks in Myanmar are allowed to issue L/Cs and operate foreign currency accounts. The Telegraphic Transfer (TT) is the most common method of payment for exporters. Through TT, they manage the payment through overseas bank (in Singapore, for example) which connect with banks in Myanmar to transfer money back.

There are currently no American banks operating in Myanmar.  Foreign banks are primarily from countries such as Japan, China, Thailand and  other ASEAN regions. In May 2019, the Central Bank of Myanmar announced that the current 13 non-native banks operating in the country will be granted licenses to open new subsidiary bank outlets to provice retail-banking services to local businesses.  The Central Bank also removed banking restrictions for the non-native banks which prohibited from lending to local businesses.  The purpose is to allow local businesses to obtain stronger and reliable access to finance for their business development.  The Deputy Governor of the Central Bank also announced that foreign subsidiaries will get more opportunities than bank branches and will also have full permission to function as local banks.

Western Union, a U.S. company and leader in the global money transfer market, entered Myanmar in 2013 by partnering with a large number of local banks and has the biggest market share. There are other international money transfer services providers, such as Xpress Money, MoneyGram, Maybank, International Money Express (IME) and Singapore Post.
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Burma Market Access Payment