The Central Bank of Myanmar (Myanmar ：မြန်မာနိုင်ငံတော်ဗဟိုဘဏ်； MLCTS: mran ma nuing ngam taw ba hui bhan; IPA: [mjımà nà inênà ̀ bêhôbà n]; English: Central Bank of Myanmar, referred to as CBM), is the central bank of the Republic of the Union of Myanmar. It is mainly responsible for issuing kyats and implementing appropriate monetary policies to maintain the value of the kyat. It is also responsible for acting as an economic affairs advisor to the government, supervising the Financial Institution Group, keeping foreign exchange reserves, and participating in international financial affairs in the name of the government, and conducting business with international organizations.

History

Copper coins were used in Myanmar during the monarchy before 1885, when the government did not have a central bank. In 1885, the British invaded Burma from India, and immediately established a branch of the Reserve Bank of India in Burma and began issuing the "rupee" currency. In 1943, Japan invaded Burma, abolished the British bank and issued a new currency. A few years later, Japan was defeated and withdrew from Burma. However, the British invaded Burma again soon after, and later reissued the "rupee" currency. The year before Burma declared independence in 1948, the autonomous government promulgated the Act of Union Bank of Burma of 1947. The following year, on April 3, 1948, the Union Bank of Burma was established and took over the Yangon branch of the Reserve Bank of India. However, at this time, the Union Bank of Myanmar was unable to perform all the functions of the central bank and was unable to issue the national currency. Therefore, it decided to establish the Myanmar Currency Board as the currency management body, and joined the British pound area to continue to use the "rupee". Later, on July 1, 1952, the "Union Bank of Burma Act" was issued, and the Union Bank of Burma officially announced the issuance of kyats, and the Burma Currency Board was merged into the Union Bank of Burma. However, at this time, the country still did not have the ability to produce money independently, so it was still contracted by the United Kingdom. It lasted until 1957, when Burma established its own banknote printing factory and began to issue currency independently. In 1962, the revolutionary government of Burma came to power and implemented a socialist economic system. Then in 1964, the authorities issued an order to nationalize all banks, and in 1967 the authorities promulgated the People's Bank of the Union of Burma Act and withdrew from the British pound. [10] In 1969, the government established the People's Bank of the Union of Burma through the previously confiscated capital 200 million kyats. Then in 1972 the authorities initiated administrative reform, and three years later the Union Bank of Burma Law of 1975 was promulgated, and the People's Bank of the Union of Burma was renamed the Union of Burma Bank: In 1988, the authorities issued a 90 yuan denomination currency and abolished the old currency without compensation, triggering civil unrest. Soon after, the government began to reform the currency system and shift the economic system from a planned economy to a market economy. On July 2, 1990, the Central Bank of Myanmar Law was issued, and the Central Bank of Myanmar (CBM) was established: p4.2. On July 12, 2013, Myanmar President U Thein Sein signed the new Central Bank of Myanmar Law, which came into effect immediately. The law clarified the powers of the central bank governor and gave the central bank more independent autonomy, making it more in line with international management norms. From then on, the Central Bank of Myanmar was separated from the jurisdiction of the Ministry of Finance and Taxation and began to operate as an independent institution. In the future, it will play a more important role in Myanmar's economic development.