The Central Bank of Myanmar (“CBM”) has issued Notification No. 2/2026 on 7 January 2026. This notification introduces a significant relaxation of the foreign exchange rules first established in 2022. Effectively, the mandatory conversion requirement for export earnings has been reduced from 25% which set out in Notification No. 37/ 2024 dated on August 7, 2024 to 15% (Notification No. 2/ 2026). The new regulation is effective retroactively from January 1, 2026.

Historical Timeline of Relaxations

To provide a clearer picture of the regulatory trajectory, the following table tracks the gradual easing of foreign exchange controls since their inception:

Compliance Reminder: Deposit Deadlines & Penalties

While the conversion percentage has decreased, the enforcement of deposit deadlines remains strict. Failure to comply with these timelines can lead to severe administrative and legal consequences.

As per the Department of Trade’s Public Announcement (dated October 6, 2023), export earnings must be deposited into an AD-licensed bank account within:

• 45 Days: For exports to Asian countries.
• 90 Days: For exports to any other countries.

The Ministry of Commerce and CBM follow a multi-step disciplinary process:

• Blacklisting: CBM sends a list of non-compliant companies to the Ministry of Commerce and AD Banks.
• Notification: The Department of Trade informs the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) to urge the company in order to deposit the earnings.
• Registration Suspension: The Department of Trade will suspend the Certificate of Exporter/Importer Registration of companies that do not deposit export earnings within two weeks after informing the companies.
• Reinstatement: If CBM informs the list of companies whose export earnings have been received, the Department of Trade unsuspends Certificate of Exporter Importer Registration.

Important Notice: For the companies that do not deposit export earnings, action will be taken according to the above measures and CBM will take actions against the companies that do not deposit export earnings even after the suspension of the Certificate of Exporter Importer Registration, according to Section 42-A of the Foreign Exchange Management Law.

Note on Retroactivity: Although Notification No. 2/2026 issued by CBM was announced on January 7, 2026, it is effective from January 1, 2026. Exporters who received proceeds during this interim period are advised to coordinate with their respective AD banks to ensure that conversion ratios are applied correctly in accordance with the retroactive effective date.

Disclaimer: The information provided in this newsletter is for general informational and educational purposes only and is not intended to be, nor should it be interpreted as, legal advice or a formal legal opinion. No reader should act, or refrain from acting, based on the contents of this update without first seeking professional legal counsel tailored to their specific circumstances and jurisdiction. For comprehensive legal support or specific inquiries regarding your company’s compliance, please contact our team directly at firm@iicole.com.

Key Contacts