Value Of Money
Myanmar is the country that travelers believe deliver the most for their money! Even more than Thailand! Most Myanmar guesthouses, hotels and Myanmar travel agency quote prices in US dollars. These places usually accept kyat, but at a slightly disadvantageous rate (say Myanmar money K 1000 to each US$ 1, rather than K 950). If you're counting pennies, bring lots of small US dollar bills-ones, fives and 10s- and use them to pay for your hotel in Myanmar. Many Myanmar hotels, shops and Myanmar government ferry clerks are reluctant to give change in foreign currency and instead offer Myanmar kyat (you'll lose a little in the conversion). Myanmar Government-run services (such as Myanmar archaeological sites, Myanmar (Burma) museums and ferries)and flights are paid for in US dollars or FEC - not euros; in some cases you may be able to beg to pay in kyat (at a slightly worse Myanmar exchange rate than on the street), but Myanmar airlines tend to accept dollars only. Items such as meals, Myanmar bus tickets, trishaw or Myanmar taxi rides, bottles of water and Myanmar market items are usually quoted in Kyat.
Previously, all travelers entering Myanmar country had to exchange foreign certificate), the Myanmar Myanmar government's primary way of acquiring dollars from tourists. This requirement was suspended in definitely in August 2003 (though word hasn't spread to everyone in the country yet). Some Myanmar government businesses such as Myanma Airways and Myanmar museums may still quote prices in FEc, and technically they can still by used anywhere in Myanmar. Most Myanmar private shops prefer foreign currency. One FEC is equal to US$ 1.
Credit cards and travelers cheques were essentially useless in Myanmar. Surprised tourists in Yangon found themselves helpless trying to use them. Depending on how the Myanmar banking situation and international sanctions develop, this may change in Myanmar. However, a few Myanmar business (including hotels) are able to accept credit cards or cash traveler's cheques in Myanmar country, usually in Singapore. But it's unwise to count on using credit cards or travelers cheques. Many traveler pre book hotels usually top end joint-venture ones using credit cards online. Some upscale Myanmar hotels in Yangon can exchange travelers cheques for a 3% to 10% commission. In Mandalay, the Myanmar Sedona Hotel accepts credit cards(visa and mastercard are your best bets) and alone Myanmar shop accepts travelers cheques for 20% commission.
Money and Banking
The Myanmar currency is the Myanmar money Kyat. The foreign Exchange Certificate (FEC), which is (officially) equivalent to the US dollar, is the second currency in Myanmar. FEC can be used for many different types of good and services but kyat is also necessary especially at Myanmar local shops and markets. Foreigners must pay for Myanmar air and train tickets in FEC or dollars and also the entrance fees to some Myanmar tourist sites such as the Shwedagon Pagoda.
The Myanmar exchange rates between these currencies often move in mysterious ways in Myanmar. There are official and unofficial rates witch move with Myanmar market demand and supply. The US dollar is usually somewhat more stable against the kyat than the FEC, but both can appreciate or depreciate dramatically within short spaces of time. Apart from a number of Myanmar private commercial banks, banks are nationalized and centralized under the Myanmar Economic Bank. Most foreigners do not open bank accounts in Myanmar, preferring to keep money in a safe in their home. Only the Myanmar Foreign Trade Bank offers a foreign currency account for foreigners: US dollars can be deposited in cash or through telegraphic transfer from a bank abroad. However, since the US imposed it's latest round of sanctions on Myanmar in August 2003, inward remittances of US dollars involving US banks have ceased.
If you do have US dollar deposits in the Myanmar Foreign Trade Bank, you can't withdraw in US dollars, only FEC, unless the account holders can show evidence that they are leaving Myanmar (eg. An Myanmar air ticket for a holiday outside Myanmar is sufficient). In theory, this should not matter as the two currencies are supposed to be at parity, but in practice the FEC often trades at a discount to the US dollar in Myanmar. If you need to open a bank account, be prepared for any transactions to be lengthy affairs; there are usually many steps involved and much paper work. Fallout of the new sanctions by the US in 2003 is that credit card transactions involving Myanmar-based merchants have not been permitted in Myanmar.
The Myanmar exchange rates between these currencies often move in mysterious ways in Myanmar. There are official and unofficial rates witch move with Myanmar market demand and supply. The US dollar is usually somewhat more stable against the kyat than the FEC, but both can appreciate or depreciate dramatically within short spaces of time. Apart from a number of Myanmar private commercial banks, banks are nationalized and centralized under the Myanmar Economic Bank. Most foreigners do not open bank accounts in Myanmar, preferring to keep money in a safe in their home. Only the Myanmar Foreign Trade Bank offers a foreign currency account for foreigners: US dollars can be deposited in cash or through telegraphic transfer from a bank abroad. However, since the US imposed it's latest round of sanctions on Myanmar in August 2003, inward remittances of US dollars involving US banks have ceased.
If you do have US dollar deposits in the Myanmar Foreign Trade Bank, you can't withdraw in US dollars, only FEC, unless the account holders can show evidence that they are leaving Myanmar (eg. An Myanmar air ticket for a holiday outside Myanmar is sufficient). In theory, this should not matter as the two currencies are supposed to be at parity, but in practice the FEC often trades at a discount to the US dollar in Myanmar. If you need to open a bank account, be prepared for any transactions to be lengthy affairs; there are usually many steps involved and much paper work. Fallout of the new sanctions by the US in 2003 is that credit card transactions involving Myanmar-based merchants have not been permitted in Myanmar.
