The U.S. Treasury Department has imposed new sanctions on Myanmar's military junta's defense ministry and two state-owned banks that support the country's foreign exchange, exposing links between the junta and foreign markets to buy weapons and other goods.

The U.S. Treasury Department has imposed new sanctions on Myanmar's military junta's defense ministry and two state-owned banks that support the country's foreign exchange, exposing links between the junta and foreign markets to buy weapons and other goods.

Since the military coup in 2021, the political situation in Myanmar has been turbulent, and armed conflicts across the country have lasted for more than two years. To support its efforts to end the embargo, the government relies on external sources, including Russian authorities, to purchase and import weapons and related materiel.

Regarding the junta's Penalties for Defense, the US Treasury Department's Office of Foreign Assets Control (OFAC) said on Wednesday that the minister had handed over $1 billion worth of materiel since his arrest. , including Russia.

The two banks approved by the military government are the Myanmar Foreign Trade Bank (MFTB) and the Myanmar Investment and Commercial Bank (MICB), which act as foreign exchange agents and can convert and convert kyats into US dollars, US dollars and euros. .

The

statement said the banks "acted as foreign exchange," allowing Myanmar state-owned companies to access international markets through foreign accounts to facilitate interactions with foreign businesses.

“The Burmese military regime controls the government’s access to international arms and weapons markets, including Russian-backed agencies, to continue violence and repression,” said Brian E. Nelson, U.S. Treasury Under Secretary for Terrorism and Financial Intelligence , who used the country's old name.

Responding to reports of possible sanctions against Thailand's public broadcaster ahead of the US government's announcement, military junta spokesman Major-General Jo Myin Tun said on Wednesday that the two banks had no accounts in the US. Bank, so can not move. It has an impact on government finances.

He said people should not worry about the sanctions and accused the US of delaying what he called the government's efforts to build a multiparty democracy.

However, as news of the sanctions broke, many money changers in Myanmar suspended dollar trading, causing the price to rise from 2,960 kyat to 3,100 kyat per dollar. Businessmen and economists in Myanmar are concerned that the kyat will appreciate against the dollar in the coming weeks.

According to Myanmar financial regulations, all domestic and foreign institutions must use MFTB and MICB to make payments related to government agencies. This may include payment of shipping port taxes, Nay Pyi Taw duties, any duties and other charges to foreign government offices.

MICB provides the process of opening LC (Letter of Credit) for customers, informing importers of foreign bank LCs, issuing LCs for customers, paying customers to banks and foreign companies. They also provide services such as business financing and other business financing services.

MFTB has more trading and non-trading business than any other bank in Myanmar as it has partnerships with other local and foreign banks. It also helps financial institutions achieve outstanding performance in the construction, agriculture, industrial and telecommunications sectors.

Topics: Access, arms, banking, defense, dollar, easing, forex, kyat, markets, MFTB, MICB, junta, Myanmar, interest rates, government, Russia, sanctions, treasury, usa, arms

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The Irrawaddy

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