The European currency, euro, will be introduced in place of US dollar in the border trade between Myanmar and China, the Myanmar finance authorities confirmed.

The confirmation, quoted by Monday's Voice Weekly, was made by Minister of Finance and Revenue Major-General Hla Tun in a latest meeting here with over 300 importers and exporters.

According to the minister, Myanmar merchants' dollar accounts, opened at the Bank of China, were closed and will be substituted with euro accounts.

It is the first time that Myanmar formally uses euro to replace US dollar in its border trade with China since August 10, 2003, when the government decided that government organizations and private enterprises should use euro in place of US dollar for international business transactions including import and export.

The decision by a cabinet meeting then stated that if the trading partners agree, Japanese yen or Singapore dollar are also allowed for use in the trading activities.

The cabinet meeting also decided that border trade with five neighboring countries, China, Thailand, India, Bangladesh and Laos, will be conducted in euro as well as the currencies of the countries concerned.

In face of then United States' economic sanctions up till now, Myanmar has made some adjustments of its financial policy. Faced with a ban on remittances of US dollar to Myanmar among a series of sanctions, the government advised foreign embassies in Myanmar to use euro in addition to US dollar through opening of accounts in euro in the Myanmar Foreign Trade Bank with US dollar still in effective use.

Myanmar is to transform border trade to normal trade to enhance bilateral trade with China.

Source: Xinhua