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Myanmar: Staff Report for the 2016 Article IV Consultation—Informational Annex

Author(s):
International Monetary Fund. Asia and Pacific Dept
Published Date:
February 2017
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Fund Relation

(As of October 31, 2016)

Membership Status: Joined on January 3, 1952; Article XIV.

General Resources Account:
SDR MillionPercent Quota
Quota516.8100
Fund holdings of currency (Exchange Rate)516.8100
Reserve Tranche Position00
SDR Department:
SDR MillionPercent Allocation
Net cumulative allocation245.76100
Holdings1.670.68

Outstanding Purchases and Loans: None

Latest Financial Arrangements: None

Projected Payments to the Fund1 (SDR Million; based on existing use of resources and present holdings of SDRs):
Forthcoming
20162017201820192020
Principal
Charges/Interest0.040.330.330.330.33
Total0.040.330.330.330.33

When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.

When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.

Implementation of HIPC Initiative: Not Applicable

Implementation of Multilateral Debt Relief Initiative (MDRI): Not Applicable

Implementation of Post-Catastrophe Debt Relief (PCDR): Not Applicable

Exchange Rate Arrangement

The kyat had been pegged to the SDR at K 8.5057 per SDR since May 2, 1977. On April 1, 2012, the authorities replaced the official peg to the SDR with a managed float. The Central Bank of Myanmar (CBM) started daily two-way multiple-price foreign currency auctions with technical assistance (TA) provided by the Monetary and Capital Markets Department (MCM). The auctions provide a mechanism for the market to determine an exchange rate that the CBM can use to set its new reference rate. However, the CBM reserves the right to intervene to moderate excessive exchange rate volatility in the foreign exchange market. The de jure exchange rate arrangement was reclassified as managed float, and the de facto exchange rate regime is classified as other managed arrangement.

Myanmar continues to avail itself of transitional arrangements under Article XIV, although it has eliminated all Article XIV restrictions. Myanmar has made significant progress toward satisfying Article VIII obligations. Almost all current account restrictions have been removed through the implementation of the 2012 Foreign Exchange Management Law. However, Myanmar still maintains an exchange restriction and a multiple currency practice (MCP) subject to Fund approval under Article VIII. The exchange restriction subject to Fund jurisdiction arises from the requirement of tax certification for authorizing transfers of net investment income abroad. The MCP arises from the two-way, multi-price foreign currency auction in the absence of a mechanism for maintaining winning bids within 2 percent of each other, and the authorities have sought a further IMF approval of the retention of this MCP.

Article IV Consultation

Myanmar is on the standard 12-month Article IV consultation cycle. The last Article IV consultation discussions were conducted on June 17–July 1, 2015 in Yangon and Nay Pyi Taw. The Executive Board concluded the 2015 Article IV consultation on August 28, 2015.

Technical Assistance

Myanmar is now one of the largest recipients of IMF technical assistance (TA). Delivery is through a mix of resident advisors; experts in the Bangkok-based Technical Assistance Office for Lao P.D.R. and Myanmar (TAOLAM) and short-term HQ and expert missions. The key areas of focus are:

  • Central Banking: a resident foreign exchange advisor and a monetary operations advisor based in TAOLAM provided frequent responsive advice, supported by HQ missions. In addition, regular expert missions were conducted in order to assist the CBM strengthen its accounting framework and systems. Both advisors have completed their assignments, and their replacements are scheduled to take duty over the coming months.

  • Financial Sector Supervision: work in this area is led by a resident advisor in Yangon supported by HQ and expert missions. AML/CFT TA is delivered by HQ staff and short-term expert.

  • Revenue Reform: a resident tax administration advisor is supported by HQ and expert missions aimed at modernizing the Internal Revenue Department (IRD). Work on tax policy is delivered through HQ missions.

  • Public Financial Management: the focus is on capacity development of the Treasury Department, following its establishment in September 2014, which was led by an advisor based in TAOLAM and supported by HQ and expert missions.

  • Statistics: the work plan in this area has been developed following a multi-sector diagnostic mission in 2013. As a result, external sector and government finance statistics advisors have taken up duties in TAOLAM and expert visits continue to assist in the development of price statistics. A rebased CPI was released in August 2016.

  • Macroeconomic Analysis: an advisor based in TAOLAM leads the work in this area that is closely integrated with the broader IMF training program.

In all areas the IMF coordinates closely with other development partners. In the financial sector, the IMF team has assisted the Central Bank of Myanmar in developing a framework for coordination of international technical assistance.

Resident Representative

Mr. Yasuhisa Ojima has been the Resident Representative of the country and stationed in Yangon, since September 2015.

The Technical Assistance Office for Lao P.D.R. and Myanmar (TAOLAM)

The IMF opened TAOLAM in Bangkok in October 2012. The new office has been providing IMF technical assistance and training, in collaboration with the Bank of Thailand and the Government of Japan. There are currently four TA advisors in the office, covering public financial management, macroeconomics training, government financial statistics, and external sector statistics, for both Lao P.D. R. and Myanmar. TA and training have recently been extended to Cambodia and Vietnam. Mr. David Cowen has headed the office since September 2015.

Myanmar: Key Technical Assistance by the Fund During 2015–16
DepartmentTopicPeriod
FADTax Policy on Petroleum Fiscal RegimesJanuary 2016
FADCustomsFebruary/March/May/June/September 2016
FADTax AdministrationAugust/September/November 2015, February/April/May/June/July/August/ September/October/November 2016
FADAnnual Review of FAD R1 TA programMarch 2016
FADFiscal LawApril 2016
FADPublic Financial Management (taking stock)October 2016
MCM/TAOLAM /LEGCoordination of Financial Sector Technical AssistanceMarch 2016
MCMCentral Bank Organizational StructureSeptember 2015
MCMReview of MCM TA ProgramOctober 2015
MCMBanking SupervisionMarch/June/September 2016
MCMDe-dollarizationSeptember 2016
LEG/MCMArticle VIIIFebruary 2016
LEGAML/CFT SupervisionFebruary/July 2016
LEGML/TF National Risk AssessmentSeptember/October 2015, March/August/October 2016
STACPI StatisticsJanuary/September 2016
STAe-GDDS ImplementationFebruary 2016
STAMonetary Statistics and FSIMay 2016

World Bank-IMF Collaboration

(November 2016)

The Fund and the Bank country teams for Myanmar, led by Mr. Yang (International Monetary Fund, IMF) and by Mr. Zachau (World Bank Group, WBG), maintain excellent working relations and dialogue on macroeconomic and structural issues.

The level of cooperation and coordination is strong, and is becoming more regular as both institutions have been scaling up their engagement in Myanmar. Staffs routinely share country documents prepared by both institutions for their respective Executive Boards and collaborate regularly in areas of mutual interest.

Following the clearance of arrears to the International Development Association (IDA) in January 2013, the Bank has resumed normal lending relations with Myanmar and the International Finance Corporation (IFC) commenced its investment and advisory activities. A pre-arrears clearance IDA grant to finance a National Community Driven Development Project preceded an initial Development Policy Operation in support of a program around macroeconomic stability and arrears clearance. Since then, 10 IDA financed projects have been approved by the Executive Board of Directors with commitments exceeding US$1.5 billion in electricity, telecommunications, public financial management, education, health, agriculture, and river basin management. The IFC has made investments in infrastructure, microfinance, hospitality and banking sectors and is developing its pipeline of investments in several sectors. The WBG has also significantly scaled up its analytical and advisory services.

Following the completion of the 2013 Staff Monitored Program, the IMF is continuing to provide intensive policy advice and technical assistance to Myanmar. On the surveillance side, annual Article IV consultations are supplemented with regular staff visits and frequent engagement through the resident representative office which was opened in 2013. Technical Assistance continues to intensify with two (three up to July 2015) resident advisors in Myanmar and five (up to October 2016) in the Bangkok-based TAOLAM alongside regular HQ-missions. Key TA priorities include development of monetary and exchange rate policy tools, enhancing bank supervision, strengthening tax policy and administration, enhancing budget preparation and execution, strengthening macro policy analysis and developing macroeconomic statistics. The Fund also has a wide-ranging training program for Myanmar.

There is strong collaboration between the WBG and IMF.

  • Macroeconomic policy advice to the authorities. WB and IMF regularly exchange views on macroeconomic developments, carry out the joint Debt Sustainability Analysis (DSA), coordinate messages to the authorities, and coordinate TA, including on macroeconomic monitoring and forecasting.

  • In the financial sector, the World Bank and IMF have been coordinating technical assistance through regular information sharing based on an earlier joint note on the IMF-WB Financial Sector TA Plan for Myanmar. World Bank TA has focused on strengthening the financial sector legal and regulatory framework (including technical input on the now approved Financial Institutions Law, and microfinance and insurance regulation and supervision); state-owned bank reform, through completion of diagnostics of the four main state-owned banks; regulatory framework for mobile financial services; and development of a Financial Sector Development Strategy.

  • On fiscal management, the World Bank and the Fund have exchanged views on priorities for the Second Public Expenditure Review; coordinating TA to the Large Taxpayers’ Office in its efforts to introduce a risk-based audit system; coordinating TA to the Treasury Department and the Myanmar Economic Bank on strengthening of the payment and settlement system; and coordinating policy dialogue through participation in the PFM sector working group.

  • On structural reforms, during the process of the preparation of the Myanmar Investment Law, the WBG has consulted frequently with the IMF on many provisions, in particular on issues related to capital and current account transfers and taxation. The IMF provided written comments on the first and second drafts of the Investment Law to the IFC and the government.

  • On statistics, there has been good ongoing collaboration including joint IMF-ADB-WB missions to Myanmar under the auspices of the National Strategy for the Development of Statistics (NSDS) project to coordinate support and advice to the government. The IMF is primarily providing TA to government finance statistics (Ministry of Finance), balance of payments (Central Bank of Myanmar), prices (Central Statistical Organization), monetary statistics/central bank balance sheets, and financial soundness indicators. The ADB is providing TA on the SNA compilation framework. The World Bank is currently focusing support to overall statistical strategy development, institutional reform, and poverty monitoring.

Based on the above partnership, the World Bank and the Fund share a common view about Myanmar’s macroeconomic and structural reform priorities. Important reform priorities include:

  • Promoting long-term growth and diversification. Modernizing Myanmar’s economy will require removing impediments to growth by enhancing the business and investment climate, encouraging financial sector development, and further liberalizing trade and foreign direct investment. The government’s Framework for Economic and Social Reform would benefit from coordination across government agencies, broader consultation with stakeholders, and lessons from other countries’ experiences through substantial capacity building efforts.

  • Macroeconomic stability. Sustainable and inclusive growth will require macroeconomic stability, which must be underpinned by a consistent macroeconomic policy mix. Macroeconomic imbalances in Myanmar have increased over the past year as seen in rising inflation and higher current account and fiscal deficits. These imbalances need to be addressed by a tightening of monetary policy and a prudent fiscal policy, along with exchange rate flexibility.

  • Foreign exchange policy. The authorities have come a long way in liberalizing the foreign exchange regime, including the realignment of exchange rates and the introduction of a daily FX auction in 2012. Foreign Exchange Management Regulations have been issued by the CBM. Deepening the foreign exchange market will require strong commitment by the CBM to follow the FX auction rules under the managed floating regime and further development of the interbank foreign exchange market.

  • Monetary policy. Strengthening the CBM’s capacity to conduct monetary policy is a critical prerequisite for macroeconomic management. To this end, the authorities need to ensure the CBM is granted full budgetary autonomy with a strengthened balance sheet and improved accounting systems. Continued attention to building tools and capacity for monetary policy is required. Priorities include regularly conducting basic open market operations, enforcing reserve requirements, and refining the reserve money forecasting and targeting framework.

  • Financial sector. Liberalization of the financial sector needs to be complemented with a stronger regulatory and supervisory framework to maintain financial stability. Changes should be implemented step by step, in line with the development of needed supervisory capability and banks’ capacity. For instance, developing money markets and improving banks’ risk management are necessary precursors to liberalization of lending rates and maturities. The new Financial Institutions Law is expected to help set the sector on a modern footing. The next step is the issuance of modernized prudential regulations, including on bank capital, loan classification, connected lending, related parties, and large exposures. Other priorities include developing a plan to reform the state-owned banks, developing plans for bank recovery and resolution, establishing appropriate regulation of nonbank financial institutions, enhancing financial inclusion, modernizing financial infrastructure including the payments system and a credit bureau, and allowing banks to provide trade finance based on documentary collection.

  • Fiscal discipline and sustainability. Myanmar faces considerable fiscal pressures due to significant spending needs on the one hand and a narrow revenue base on the other. Priorities include: (i) improved revenue collection, including through the system of tax self-assessment; (ii) strengthened debt management through implementation of the newly adopted Public Debt Law (2016); (iii) efficiency of expenditure, particularly related to public investments; and (iv) ensuring fiscal discipline of State Economic Enterprises.

  • Prioritizing fiscal policies toward social and infrastructure spending. Continued increases in budgetary allocations towards health and education are welcome. There is still room for reallocating further resources to social sectors where spending levels remain relatively low. Further room remains also for increased efficiency in spending on infrastructure which is currently in a poor state and negatively affecting the business climate.

  • Strengthening statistical capacity. The government has outlined six priority areas for statistical development: (i) modernizing the system of national accounts by adopting the SNA 2008 framework and improving source data; (ii) strengthening the monitoring of poverty and living conditions; (iii) revising and updating the Central Statistical Authority Act 1952; (iv) developing and adopting a National Strategy for Development of Statistics; (v) establishing inter-agency statistical clusters to improve coordination and collaboration on statistical issues; (vi) strengthen capacity of Central Statistics Organization including through staffing and budget allocations.

    These are very sensible priorities, which will need to be implemented in a prioritized and sequenced manner. In the short term the government aims to implement SNA 2008 (today they broadly follow SNA 1968). This implies developing complementary data systems to produce the minimum required data sets and constructing a Supply-Use Table (SUT). The ADB is providing TA on the compilation framework/SUT and IMF is providing TA to selected sectors.

    WB is in discussions with the government on financial and technical support for a new household survey. Besides information on poverty and household living conditions, a new household survey will be an important source of data on the household final consumption for the SUT.

  • Private Sector Development. To enhance investment (especially FDI) reforms are needed to streamline procedures around funds transfers, including the inflow and repatriate of profits and capital. The Investment Law ensures the rights for funds transfer, but there is uncertainty in regard to the procedures and time required for funds transfers to be approved by the CBM.

    The teams are committed to continue their close cooperation going forward. The table below details the specific activities planned by the two country teams over the period November 2016–October 2017.

Myanmar: Joint Management Action Plan November 2016–October 2017
ProductsTime horizon
WB1) Lending operations
Additional Financing CDD ProjectOngoing
Agricultural Development Support ProjectOngoing
Ayeyarwady Integrated River Basin Management ProjectOngoing
Myanmar Essential Health Services Access ProjectOngoing
Myanmar Decentralizing Funding to SchoolsOngoing
Modernization of Public Finance ManagementOngoing
MM: Telecommunications Sector ReformOngoing
Electric Power ProjectOngoing
Myanmar National Community Driven Development ProjectOngoing
National Electrification ProjectOngoing
Flood and Landslide Emergency Recovery ProjectOngoing
Myanmar Financial Sector Development ProjectNext 6 Mo.
Myanmar Development Policy OperationNext 6 Mo.
Myanmar Disaster Risk Management ProjectNext 12 Mo.
2) Analytical and advisory activities
Myanmar Economic MonitorOngoing
Myanmar Civil Service Pay, Compensation and Human Resource ReviewOngoing
Public Expenditure Review 2Ongoing
Review of land title transfer procedures TAOngoing
WBG Myanmar Financial Inclusion TA programOngoing
Agriculture Public Policy and Public Expenditure ReviewOngoing
Myanmar Power Sector Study of Electricity Tariffs and Subsidies MechanismsOngoing
Myanmar Power Sector Financial Analysis and Viability Action PlanOngoing
Policy making and regulations for rural electrificationOngoing
Geospatial Least Cost Planning for distribution system expansionOngoing
Myanmar Jobs ReportOngoing
IMF1) Surveillance missions
Staff visitApr. 2017
Article IVNov. 2017
2) TA activities
Customs AdministrationOngoing
Tax Administration (including, Performance management; Project management;Ongoing
Human resources strategy, and others)
Operations Management Unit DesignOngoing
MTO planning/ data analysisNext 12 Mo.
Legal unit procedures designOngoing
Tax policy including fiscal regime for oil and gasOngoing
PFMOngoing
Banking Diagnostic ReviewNext 12 Mo.
Banking SupervisionOngoing
FX marketsOngoing
Legal drafting and supervisionOngoing
AML/CFT supervisory toolsOngoing
ML/TF National Risk Assessment ReportOngoing
Fiscal law for tax administrationNext 12 Mo.
PPIOngoing
Government Finance StatisticsOngoing
External Sector StatisticsOngoing

Relations with the World Bank Group1

(November 2016)

Myanmar became a member of the World Bank in 1952, IFC in 1956, IDA in 1962, and MIGA in 2013. By 1987, the Bank’s total portfolio amounted to US$804 million equivalent, of which US$752.8 million equivalent had been disbursed. New lending ceased after 1987. The last formal Consultative Group meeting was held in January 1986 in Tokyo, chaired by the World Bank.

Myanmar went into arrears with the World Bank in January 1998 and subsequently into nonaccrual status in September 1998. All credits that had been approved but which had not fully disbursed were cancelled and Myanmar was not eligible for new loans. The World Bank’s engagement with Myanmar became limited to monitoring economic and social developments in the country.

Relations between Myanmar and the World Bank were recently normalized. The World Bank provided a US$80 million grant in 2012 for a Community Driven Development Project. The Government of Myanmar cleared the full amount of its arrears to the World Bank in January 2013, in the amount of US$420 million through a bridge loan from the Government of Japan. The World Bank resumed lending to support Myanmar’s foreign exchange needs, including those associated with IDA arrears clearance.

The World Bank opened its first ever country office in Myanmar on August 1, 2012. Initial engagement with Myanmar was guided by an Interim Strategy Note (FY13–14). This was followed by a Systematic Country Diagnostic (SCD) that identified priorities for accelerating progress towards the twin goals that the WBG has committed to helping attain in its member countries: ending poverty and boosting shared prosperity.

The SCD provided the basis for a Country Partnership Framework (CPF), the first full country strategy for Myanmar since 1984. The CPF program, which runs from FY2015 to FY2017, has three areas of focus: reducing rural poverty; investing in people and effective institutions for people; and supporting a dynamic private sector to create jobs.

Myanmar’s IDA 17 allocation is US$1.6 billion. The CPF identifies an indicative program based on this amount, with significant frontloading. In addition, IFC expects to provide up to US$1 billion in investments over the CPF period and US$20 million in technical assistance. MIGA will provide insurance against political risks based on demand by private investors.

Since the approval of the pre-arrears grant to finance a National Community Driven Development Project, ten IDA lending projects have been approved by the Executive Board of Directors in agriculture, additional financing for the community driven development project, river basin management, electricity, telecommunications, public financial management, health, education, and agriculture. IFC has made investments in infrastructure, microfinance, hospitality and banking,

There are several WB lending projects in the pipeline for delivery within the next 12 months: on financial inclusion, health financing, and policy-based lending. IFC is developing its pipeline of investments in several sectors. Apart from lending programs, the World Bank has significantly scaled up its analytical and advisory services.

Relations with the Asian Development Bank2

(November 2016)

Myanmar joined the Asian Development Bank (AsDB) in 1973 and operations started the same year. In 2012, as the international community resumed engagement with Myanmar as a result of significant economic and political reforms, the AsDB developed a road map for resumption of normal operations. The activities included initial assessments of the economy and of key sectors, provision of technical assistance, and development of an interim country partnership strategy for 2012–2014.

AsDB’s interim country partnership strategy for 2012–2014 (extended to 2016) seeks to support the government in achieving sustainable and inclusive growth. It focuses on (i) building human resources and capacities (capacity building in ministries in core areas of AsDB involvement, and education); (ii) promoting an enabling economic environment (macroeconomic and fiscal management; and trade, investment and financial sector reform); and (iii) creating access and connectivity (rural livelihoods and infrastructure development, especially energy and transport). AsDB has mainstreamed the thematic areas of good governance, environmental sustainability, private sector development, and regional cooperation and integration into its operations. AsDB will focus on the crosscutting areas of knowledge and partnerships. The AsDB Country Operations Business Plan 2014–2016 (finalized in November 2013), laid out an investment program covering energy, transport (roads), agriculture and natural resources, and urban development.

In 2016, AsDB completed the analytical and consultative work for a full Country Partnership Strategy, planned for the period 2017–2021, to be submitted for Board endorsement in early 2017. The Country Partnership Strategy as well as the annual Country Operations Business Plan for 2017–2019 (finalized in October 2016) reflect a gradual shift towards increased sector focus, concentrating on infrastructure (transport, energy, and urban development), education and training, and rural development as priority activities. It will apply a long-term approach in the priority areas, and is coordinated and aligned with evolving strategies and sector activities of other development partners.

Myanmar cleared its arrears to AsDB in January 2013. The AsDB has so far provided 43 loans and grants totaling US$1,532.4 million for 37 projects and one policy-based operation. Of these, two loans amounting to US$6.6 million were from the AsDB’s ordinary capital resources (OCR) which have already been pre-paid, 34 loans were from concessional Asian Development Fund resources, and 7 were grant-financed. The AsDB has so far provided technical assistance (TA) totaling US$67.8 million for 97 projects. Of these 71 TA projects, 54 were approved since AsDB reengaged with Myanmar in 2012.

With resumption of its engagement with the international community, Myanmar is an increasingly active participant in the Greater Mekong Subregion Economic Cooperation Program and the Association of Southeast Asian Nations (ASEAN). AsDB coordinates closely with the IMF, the World Bank, the UNDP, and other development partners and is actively engaged in various sector and thematic working groups formed by the government for aid coordination purposes.

The largest share of AsDB assistance has been provided to support public sector management, followed by development of the agricultural sector (largely prior to 1988). The sector composition of AsDB accumulated lending to Myanmar is shown below:

Myanmar: Asian Development Bank Lending and Grants 1973–November 2016
SectorLoans (Number)Loans (US$ million)Percent
Agriculture and natural resources17341.122.3
Energy6166.810.9
Finance220.01.3
Health, nutrition, and social protection373.14.8
Industry and trade326.41.7
Public sector management2578.537.8
Transport4222.514.5
Water supply, sanitation, and waste6104.06.8
management
Total431,532.4100.0
Source: Asian Development Bank
Source: Asian Development Bank

Statistical Issues

As of December 15, 2016

I. Assessment of Data Adequacy for Surveillance
General: Data provision has serious shortcomings that significantly hamper surveillance. Data are not provided in a timely manner, and official and independent estimates of key macroeconomic variables differ widely.
National Accounts: Myanmar’s national accounts follow the 1968 System of National Accounts. National accounts data are only available on an annual basis. Quarterly data are also compiled, but are not disseminated. Gross Domestic Product (GDP) estimates are compiled at current and constant prices by production and expenditure approaches, with 2010/2011 as base year. Significant discrepancies exist between the two approaches. GDP is estimated at producer prices, instead of the internationally recommended market prices. The quality of the GDP measures is hampered by inadequate source data and the lack of relevant price indexes, such as the producer price index. National accounts estimates do not completely account for informal sector activity. Estimates of some economic activities, particularly in agriculture, construction, and public administration, need major improvement. Resource constraints at the Planning Department and the Central Statistical Organization, along with the lack of interagency coordination and a clear delineation of responsibilities, limit the conduct of surveys and other data collection. Technical assistance (TA) is being provided by Asian Development Bank (AsDB) and United Nations Development Program (UNDP) to improve the national accounts and to implement the 2008 SNA.
Price Statistics: The IMF Statistics Department (STA) has been providing TA to develop a new CPI since March 2013. The new CPI covering the whole country was released in August 2016. The new CPI is based on the 2012 Household Income and Expenditure Survey (HIES), and is according to international standards and best practices. The new index includes 274 products and services, compared to 158 in the previous one.
Government Finance Statistics: There is no comprehensive monthly or quarterly compilation of fiscal data. Monthly cash-based budget execution data are available in local language, but are not published. Annual comprehensive data are compiled with delays of up to 12 months after the end of the reference year. In addition, some transactions of state economic enterprises are recorded partly on an accrual and partly on a cash basis. Fiscal and monetary data are not consistent. Budget estimates and actual expenditures tend to differ by wide margins. In addition, recording of debt statistics is not comprehensive.

Myanmar is participating in a three-year program funded by the government of Japan designed to improve government finance statistics in the Asia and Pacific Region. In addition, a long-term GFS advisor is currently stationed at the IMF’s Technical Assistance Office for the Lao PDR and the Republic of the Union of Myanmar (TAOLAM) in Bangkok, Thailand, also funded by the government of Japan, but under a separate program. Regular TA visits to the country are undertaken by the GFS Advisor.
Monetary and Financial Statistics: The monetary survey compiled by the Central Bank of Myanmar (CBM) covers the central bank and all commercial banks (public and private). Reporting of monetary data in the Standardized Report Forms, which accord with the Monetary and Financial Statistics Manual classification principles, was established in January 2012. Nine finance companies and a multiple of deposit taking microfinance institutions have been established in 2013–14. In addition, nine foreign bank branches commenced their operations in 2015 and were included in the monetary statistics. The quality of monetary statistics could be further improved by: (i) expanding the coverage of institutions; (ii) monitoring the consistency of the reciprocal/interbank accounts that show positions between the CBM and the commercial banks; and initiating data review and resolution of large inconsistencies; (iii) using electronic means to capture and share data to minimize mistakes; and (iv) in due course, adopting market or fair value-based valuation of financial instruments.
Financial sector surveillance: The authorities do not provide financial soundness indicators (FSI) to STA for dissemination, but compilation program for the Financial Soundness Indicators is currently under development, which will be critical for effective surveillance of the financial sector. The CBM is currently implementing regulatory prudential measures, which will improve the FSI data quality.
External sector statistics: The balance of payments (BOP) and international investment position (IIP) are compiled on the basis of the sixth edition of the IMF Balance of Payments and International Investment Position Manual (BPM6) since 2015 and quarterly figures are reported to STA. Myanmar has not yet participated in the Coordinated Direct Investment Survey (CDIS). Although recent revisions have resulted in more accurate classifications of transactions and positions, the reliability of the balance of payments and IIP remains broadly impacted by coverage gaps in most components of (e.g., some services, direct investment assets, portfolio investment assets and liabilities, and other investment assets). The revaluation of the national currency in April 2012 resulted in a large break in the balance of payments and IIP series.

A STA three-year project on the Improvement of External Sector Statistics in Lao P.D.R. and Myanmar started in March 2014. Under the project, TA is provided by the external sector statistics resident advisor stationed at the TAOLAM in Bangkok, Thailand.
II. Data Standards and Quality
Myanmar began participating in the IMF’s General Data Dissemination System (GDDS) in November 2013, which was superseded by the enhanced GDDS (e-GDDS) in 2015.

A Fund mission on e-GDDS to Myanmar in early 2016 under a Japan government-funded project for enhancing data dissemination in the Asia and Pacific region facilitated the authorities’ progress in implementing the e-GDDS.
No data ROSC is available.
Myanmar: Table of Common Indicators Required for Surveillance(As of December 15, 2016)
Date of latest ObservationDate ReceivedFrequency of Data1Frequency of Reporting1Frequency of Publication1
Exchange Rates11/1611/16DDD
International Reserve Assets and Reserve Liabilities of the Monetary Authorities210/1610/16MMI
Reserve/Base Money10/1610/16MMM
Broad Money10/1610/16MMM
Central Bank Balance Sheet10/1610/16MMM
Consolidated Balance Sheet of the Banking System10/1610/16MMM
Interest Rates310/1610/16MIM
Consumer Price Index11/1611/16MMM
Revenue, Expenditure, Balance and Composition of Financing4—General Government5FY 15/1610/16AINA
Revenue, Expenditure, Balance and Composition of Financing4—Central GovernmentFY 15/1610/16AINA
Stocks of Central Government and Central Government—Guaranteed Debt6FY 15/1610/16AINA
External Current Account BalanceFY 15/1610/16QQQ
Exports and Imports of Goods02/1610/16MMM
GDP/GNPFY 15/1610/16AAA
Gross External DebtFY 15/1610/16AII
International Investment Position7Q2/201610/16QQQ

Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A); Irregular (I); Not Available (NA).

Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.

Officially determined, including discount rates, money market rates, rates on treasury bills, notes, and bonds.

Foreign, domestic bank, and domestic nonbank financing.

The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds), state and local governments, and State economic enterprises (SEEs).

Including currency and maturity composition.

Includes external gross financial asset and liability positions vis-à-vis nonresidents.

Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A); Irregular (I); Not Available (NA).

Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.

Officially determined, including discount rates, money market rates, rates on treasury bills, notes, and bonds.

Foreign, domestic bank, and domestic nonbank financing.

The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds), state and local governments, and State economic enterprises (SEEs).

Including currency and maturity composition.

Includes external gross financial asset and liability positions vis-à-vis nonresidents.

Prepared by the World Bank Group’s staff.

Prepared by the Asian Development Bank’s staff.

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