The State Administration Council (SAC), the military junta that seized power in Myanmar in February 2021, has blamed some banks for being unfaithful to the state, despite receiving assistance from the government during the attacks on the banking system. The SAC spokesperson, Major General Zaw Min Tun, made this statement at a press conference on August 22, 2023.
Attacks on the banking system
According to Zaw Min Tun, the first attempt to destabilize the country after the coup was to make the banking system collapse. He said that there were long queues at the banks to withdraw cash, and that the Prime Minister and the Central Bank helped the banks to survive. He did not specify which banks received help or what kind of help was given.
He also claimed that some of those banks are now no longer loyal to the state, and that the SAC is cooperating with the banks and the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) to ensure stability. He did not name any disloyal banks or what actions they have taken against the state.
Restrictions on imports and exports
Zaw Min Tun also defended the restrictions imposed by the SAC on imports and exports, saying that they are necessary to balance the foreign exchange market. He said that the SAC has given special rights to importers of essential goods such as cooking oil, fuels and medicines, and that they buy 50 percent of the exporters’ earnings at a fixed rate of 2,900 kyats per US dollar.
He accused some exporters of being greedy and selling their dollars in the black market, where the exchange rate is over 3,500 kyats per dollar. He said that this is not an accusation but a proof, and that the SAC will take necessary action against them.
He also said that the SAC is relaxing the restrictions gradually while encouraging imports.
Impact on the economy
The SAC’s policies have been widely criticized by economists and business groups, who say that they are hurting the economy and causing inflation, shortages and unemployment. According to the World Bank, Myanmar’s economy contracted by 18 percent in 2021, and is expected to shrink further by 9.8 percent in 2023.
The banking sector has been particularly affected by the political turmoil, as many people have lost trust in the financial system and have withdrawn their savings. The banks have also faced sanctions from foreign governments and institutions, as well as cyberattacks from anti-coup activists.
The restrictions on imports and exports have also disrupted trade and commerce, as many businesses have faced difficulties in accessing foreign currency and paying for goods and services. The SAC has also imposed a 10 percent tax on exports, which has reduced the competitiveness of Myanmar’s products in the international market.
Resistance from civil society
The SAC’s policies have also faced resistance from civil society groups, who have launched various campaigns to boycott military-linked businesses and banks. Many people have also participated in protests and strikes against the coup, despite the violent crackdown by security forces.
According to the Assistance Association for Political Prisoners (AAPP), more than 6,000 people have been killed and more than 10,000 have been arrested since February 2021. The SAC has denied these figures and accused the AAPP of spreading false information.
The civil disobedience movement (CDM) has also paralyzed many sectors of the economy, as thousands of workers from various fields such as health care, education, banking, transportation and media have joined the movement. The SAC has tried to persuade or coerce them to return to work, but many have refused.
