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Reuter: Burma cancels 10 pct FEC se



Subject: Reuter: Burma cancels 10 pct FEC service charge

I have overlooked this one two days ago:

050857 :Burma cancels 10 pct FEC service charge
    RANGOON, June 5 (Reuter) - Burma's financial authorities
have revoked a 10 percent bank service charge on the handling of
foreign exchange certificates (FECs) effective June 1, the
state-run Myanma News Agency reported on Wednesday.
    The move was expected to boost confidence in the
dollar-denominated FECs but was not seen affecting their rate of
exchange against the kyat, foreign exchange agents said.
    "It will certainly help improve users' confidence in the
FECs but it won't have a strong effect on the trading price in
the market," a licensed exchange agent told Reuters.
    The FECs were introduced in February 1993, originally for
use by foreign visitors, and can be exchanged for kyat at the
Burmese currency's market value.
    The kyat is officially valued at 5.8 to the dollar but the
black market rate is around 135 kyat to the dollar.
    Regulations were amended in December to allow Burmese
citizens to use FECs and 10 exchange agents were licensed to
handle them.
    The FECs are seen by observers as a device to allow foreign
business people and tourists to exchange money at the market
rate without having to devalue the kyat.
    There were about $90 million worth of FECs in circulation in
Burma at the beginning of the year, according to offical
figures.
 REUTER

Imre Der
editor

MTI-Eco
Hungarian News Agency
Business Information Service