The Myanmar government insisted Thursday that it was committed to addressing concerns that more than US$1.5 million in cyclone aid has been lost because of the country's antiquated currency controls.
In a meeting with the United Nations, U Soe Tha, the country's planning and economic minister, denied the government was exploiting the situation and suggested one solution would be for aid agencies to transfer dollars into the bank accounts of local vendors whom they purchase goods and services from.
"The Government is committed to addressing this concern of the international humanitarian community," U Soe Tha said a statement. "We do have alternative ways for the international humanitarian community, including international NGOs, to bring in dollars and to get the full dollar value of their assistance."
Until now, Myanmar has required that foreign aid money be converted first into Foreign Exchange Certificates at a set price and then into the country's national currency, the kyat. The certificates have been worth as much as 25 percent less than the market value of an equivalent number of U.S. dollars, causing US$1.56 million in losses since the cyclone hit on May 2-3, the U.N. said.
The certificates were introduced by the military junta in 1993 to counter a thriving black market and take advantage of a rise in tourism dollars coming into the country. But the black market has remained popular for most citizens because the official exchange rate remains artificially low at about 6 kyat to the dollar.
Dan Baker, the U.N. humanitarian coordinator for Myanmar, said he was concerned that the losses could upset donors who have already shown a reluctance to fund the relief effort following the May 2-3 cyclone that killed nearly 85,000 people.
"We are not getting the full value of dollars donated for emergency relief, and donors are extremely worried and keen to see that this issue is resolved," he said in a statement.
Bishow Parajuli, the U.N. resident coordinator in the country, said the government's offer of dollar-to-dollar transfers "would hopefully help us to address the bulk of the problem very quickly."
The push to abandon the certificates comes as the U.N. is pressing nations to donate another US$290 million for the Myanmar relief effort.
