Two banks in Myanmar have successfully carried out an inter-bank repo trade worth K500 million using CBM-NET, the Central Bank of Myanmar’s new clearing and settlement system. The transaction was carried out by KBZ Bank and Yoma Bank. The move is significant for Myanmar, where liquidity has been insufficient and many businesses, particularly in construction and real estate, are cash strapped. According to Vijay Maheshwari, CFO, Yoma Bank, repos are an important tool for a sound financial system in Myanmar as it contributes towards efficient liquidity flows in the system. U Win Lwin, MD, KBZ Bank, said the initiative would lead to the development of bilateral interbank lending transactions as an alternative investment structure in the Myanmar financial market.
