Monetary Operations Capacity Development in Myanmar


Assist the Central Bank of Myanmar (CBM) in improving the monetary operations needed to implement reserve money targeting. The primary focus was to help the CBM implement a reserve targeting mechanism by improving the framework for liquidity monitoring and projections, enhancing tools for liquidity absorption and developing the supporting market infrastructure.


With the support of the Japanese government and the Bank of Thailand, the IMF assisted the CBM in developing tools for reserve money projections. The IMF also provided advice on development of the interbank market and regulatory changes made to facilitate interbank transactions. Additionally, the IMF advised on ways to improve the budget for monetary operations and refine the government’s cashflow inputs to liquidity monitoring and forecasting. The IMF held a variety of training sessions that covered both the technical monetary operations issues and required IT skills for CBM staff and the Ministry of Finance.


The CBM upgraded its liquidity monitoring and forecasting from a monthly snapshot to weekly updates. It also implemented a reserve requirement ratio in 2015. The dematerialization of treasury bills and their issue on a discounted basis at auction in January 2015 was a significant step toward expanding the tools for monetary operations. Similarly, the IMF assisted in developing electronic book-entry treasury bonds with standardized coupons and maturity dates—their issue at auction began in 2016.

The CBM has also made substantial progress in transitioning from a system of direct monetary controls to market-based monetary operations and in implementing their reserve targeting monetary framework. While additional reforms are needed for continuing development of monetary operations, an effective foundation has been laid.