DHAKA: Myanmar has announced it will curb the widespread use of US dollars by firms, to stabilize the tumbling domestic currency, the kyat.

The central bank has revoked foreign exchange licenses from businesses ranging from hotels and restaurants to golf clubs and hospitals.

It said a growing preference for the US dollar has spurred demand for it, and led to ‘exchange rate instability’, reports the BBC.

The US dollar is used widely in the tourism industry.

Since the end of military rule in 2011, Myanmar has launched economic reforms, adopting a floating rate for the kyat.

The licenses, however, have allowed many people to use the dollar for domestic transactions, bypassing the local financial system.

The kyat has fallen more than 20% so far this year, making it one of the worst-performing currencies in the region.

In a statement, the country’s central bank said the special licenses were revoked to combat ‘dollarization’.

BDST: 1545 HRS, OCT 20, 2015
RR