restricted access Foreign Exchange Market Reform in Myanmar: Achievements and Challenges

Myanmar has made an overt move from a de facto multiple exchange rate system to a managed floating exchange system, but the impact of reform of the foreign exchange market on the economy remains unclear. While reform measures have alleviated segmentation within the foreign exchange market, they have not completely driven out transactions that take place within a pre-existing parallel market. Such transactions may be cost efficient for individual firms, but could hinder the development of the financial sector.