Myanmar’s commerce minister hopes to implement a rupee-kyat trade arrangement with India by June end, aiming to reduce dependence on US dollar and China for textile imports.
With India already being a key source of cotton for Myanmar, this could boost India’s role in Myanmar’s textile industry.
China dominates Myanmar’s import market for fabric and yarn.
Myanmar’s commerce minister U Aung Naing Oo expressed hope that a rupee-kyat trade arrangement between India and his country will be in place by the end of June. Currently, Myanmar is heavily dependent on China for textile imports. The rupee-kyat trade could make India a more favourable source for textile products, similar to China. An existing arrangement between Myanmar and China for yuan-kyat trade has been implemented to reduce dependence on the US dollar.
The Minister from Myanmar hopes that the trade volume between the two countries will double once the arrangement is worked out, as Myanmar has been hit by US sanctions and is unable to earn sufficient foreign exchange to import goods from its trade partners.
The country has already arranged trade in Yuan-Kyat with China. Importers have been instructed to pay solely in yuan if they are importing goods from China. Myanmar’s goal is to conserve US dollars and lessen its reliance on the global currency. For the same purpose, it is working towards initiating trade with India in rupees.