XV. MONETARY

Money Supply (Table 15.01)

Money supply shown in table 15.01 consists of currency in circulation and demand deposits. Demand deposits exclude savings deposits and non-resident accounts.

Currency in circulation consists of notes and coins held by the general public, cash balance of ministries and departments, state economic enterprises, development committees and also includes notes and coins held by the hand balance chest of the banks. Notes and coins in the currency chest of the Central Bank of Myanmar and other banks are excluded.

People's Savings

People's savings are savings deposits, time deposits and certificates of Savings Division at the Myanma Economic Banks and private banks which also accept savings deposits and time deposits. The savings are shown in table 15.02.

Savings deposits and time deposits are accepted at all Myanma Economic Banks savings branches as well as at all private banks to promote domestic saving under the new Savings Bank Law which was enacted on 11 June 1992.

Cash certificates column is excluded as they had not been issued since 1963 and the balance is still held by the accounts department of the Central Bank of Myanmar.

Savings certificates are issued by the state-owned banks under the new Savings Bank Law 1992, and they are issued in varied denominations of Kyat 5, Kyat 10, Kyat 50, Kyat 100, Kyat 1000, Kyat 10,000 and Kyat 100,000 which will mature after completion of twelve years from the date of issue. At the option of the owner, savings certificates may be redeemed at any time after twelve months from the date of issue with accrued interest for relevant period.

Treasury Bonds

Two types of government treasury bonds, three-year treasury bonds and five-year treasury bonds are issued with effect from 1st December 1993 at the Central Bank of Myanmar with a view to giving an opportunity for the public and private enterprises to save and developing a capital market. The data are shown in table 15.03.

Interest Rates

Central bank rate, interest on treasury bills and bonds, deposit rates, and lending rates are shown in the table 15.04. Beginning 1st April, 1989, state economic enterprises were not allowed to borrow from the banks.

Balance Sheet of the State-owned Banks

Balance sheet of the state-owned banks in table 15.05 shows the consolidated position of the Central Bank of Myanmar, Myanma Economic Bank, Myanma Agricultural and Development Bank, Myanma Foreign Trade Bank and Myanma Investment and Commercial Bank.

Establishment of Domestic Private Banks

The Central Bank of Myanmar grants operating licence to domestic private banks under the Financial Institutions of Myanmar Law enacted on 4th July 1990, with a view to promoting banking business in the private sector.

As of December 2002, 20 private banks were operating in the country.

Balance Sheet of the Domestic Private Banks

Balance sheet of the domestic private banks in table 15.06 shows the consolidated position of private banks.

Foreign Exchange Reserves

Foreign exchange reserves in table 15.07 include gold and foreign currencies. Gold is valued at SDR 35 per fine troy ounce and converted into Kyat at the official fixed rate of K 8.50847 per SDR. Foreign currencies are valued at certified average official rates.