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What will be the effect of the US government sanctioning two banks?

What will be the effect of the US government sanctioning two banks?

Economists believe that after the United States officially announced on the evening of June 21 that the two banks under the Military Council, MFTB and MICB, will have an impact on Myanmar's economy and investment.

The MOGE revenues of the military council, which activists often demand, yesterday, on the evening of June 21, the United States announced sanctions against those banks because of the use of those banks in matters related to the purchase of military weapons.

Myanmar Foreign Trade Bank (MFTB) and Myanmar Investment and Commerce Bank (MICB) are state-owned financial institutions that mainly conduct foreign exchange and exchange kyats for US dollars and euros.

It is said that most of the investments and trade in goods within Myanmar are mainly carried out by these two banks, but it is also said that international communication will be done through regional banks.

Economists and activists also wonder whether the sanctions against the two foreign-currency-linked banks will affect international investment and the military council's arms purchases.

Myanmar activists have considered that the military council could be seriously harmed by the United States' implementation of one of the issues raised by civil organizations and revolutionary forces repeatedly.

Domestic revolutionary strike forces are also of the view that the United States sanctions are welcome, and urge that European organizations, ASEAN, and neighboring countries need to do the same as the United States.

The revolutionary forces say that only by cutting off the financial flows and legalization of the military group, the current oppression and violence will be stopped.

Zaw Min Tun, a spokesperson of the Military Council, said in response to the propaganda media of the Military Council on June 21 that the two banks did not open foreign currency accounts at American-based banks and branches, so there was no financial loss.

In addition, the Ministry of Planning and Finance of the Military Council announced today, June 22, that foreign banking services are not provided by these two banks alone but can be done through the foreign branches of local private banks. However, to prevent possible consequences, some of the central bank's insiders said that some top businessmen, including the central bank, are preparing to convene a meeting to regulate and respond to the sanctions.

An economic expert said that due to these sanctions, the name of the military council in the international investment community will be lost, and the military council will have to face a situation where foreign companies will avoid visiting and investing. "The number of people who will come and invest has decreased during his time, and the inflow of foreign currency has decreased. There will be only China, India, and Thailand," he added.


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