Traders in Rakhine State claims that the border trade with Bangladesh has declined due to US dollar shortage there as the banks could not sell the required dollars to the traders.
Bangladesh pays in US dollars for imports from Myanmar in border trade.
Currently, the two banks including Sonali Bank in Bangladesh are not selling dollars to the border traders, giving various excuses, leading to a suspension in trading and problems with exports from Myanmar.
Under the new export policy by Myanmar, 65% of export earnings from border trade must be mandatorily exchanged at the rate controlled by the Central Bank of Myanmar (CBM). This has reportedly led to lower trader profits.
The traders said that some of them had to suspend their businesses as they could not sell their goods if they hiked the prices of their goods.
Myanmar exported over 1,000 tons of Rohu fish to Bangladesh in January from the Maungdaw border trade post and earned US$2.5 million. In March, Myanmar was able to export only around 200 tons of Rohu to Bangladesh, according to trade statistics compiled by the Maungdaw border trade post.
The traders said that they could not say how long this dollar shortage will last in Bangladesh and it would affect the border trade with Bangladesh in Rakhine State if it lasts longer.
A responsible official from the Rakhine State Chamber of Commerce and Industry said that the control and restriction on dollars would cause distrust and that it would drive official border trade to become unofficial trade through illegal channels.
