The U.S. Treasury Department approved the Myanmar military junta’s defense ministry and two state-owned banks on June 21. The two banks, the Myanmar Foreign Trade Bank (MFTB) and the Myanmar Investment and Commercial Bank (MICB), manage most of the money. Myanmar's foreign affairs control financial transactions between the military and international markets. Part of the funds will be used to purchase and import military equipment and related military equipment, according to the Ministry of Finance. “The Burmese military junta has helped the government gain access to international arms markets, including Russian-backed institutions, to continue violence and oppression. Violence continues,” said Brian E. Bryan. Nelson, Assistant Secretary of the Treasury for Terrorism and Financial Intelligence.
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statement said that the government's financial institution allowed the government to convert dollars and euros into kyats. It said the change would allow the Myanmar Oil and Gas Enterprise (MOGE), a state-owned company that generates large amounts of foreign military financing, to access international markets through offshore accounts, allowing people to easily transact with foreign banks. The U.S. government said the Department of Defense has sent supplies and equipment worth $1 billion by the end of 2021. US citizens are not allowed to do business and make money with powerful organizations. The assets and interests of the donor must be restricted and disclosed to the United States. treasury.
The punishments have been welcomed by human rights activists and the National Unity Government (NUG). "We welcome today's sanctions imposed by the United States on the Burmese military junta, including two financial institutions that facilitate transactions between the military junta and foreign markets. International players must stop using foreign exchange and ban their products such as oil and gas," President Duvalash said. said Thinzar Shunlei Yi, a Myanmar democracy activist. of NUG. "Someone asked why the sanctions took so long to be implemented. “The U.S. Department of the Treasury imposed sanctions on the Myanmar Foreign Trade Bank and the Myanmar Investment and Commercial Bank — that’s it! Thank you very much, but why did it take you so long to do so?” Phil Robertson, Deputy Director for Human Rights Asia ( Phil Robertson tweeted.
The authorities have reduced the severity of the punishment. "Public banks provide banking services in an orderly and equitable manner, and because they do not maintain foreign currency accounts with U.S. banks or U.S. bank branches, they will not face a loss of revenue and will continue to provide regular services. Business will be conducted in foreign currencies", Ministry of Finance said. Nay Pyi Taw also said the sanctions would not affect the country's banks as they also rely on private banks and foreign branches of foreign banks, adding that public banks are U.S.-approved.
The government has reduced investment in recruiting troops from 2021. Shortly after, U.S. President Joe Biden ordered a $1 billion freeze in the Central Bank of Myanmar (CBM). The kyat will depreciate from 2021 onwards in favor of the U.S. dollar as Myanmar’s foreign exchange shortage persists. Markets were closed as foreign exchange and gold traders were seized. To strengthen its currency and fight inflation, the government has ordered the conversion of all foreign currencies in the country's treasury into kyats on April 3, 2022. The administration has also taken other steps to reduce the country's dependence on the United States. trade dollars. India and Thailand trade in local currencies.
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