Planning a trip to Myanmar (Burma)? The financial landscape can be quite complex, especially given the country's current political climate. Here's what you need to know about handling money as a tourist in Myanmar:

There are essentially four different pricing structures:

1. Price in MMK (for locals)

2. Price for foreigners in USD

3. Price for foreigners in MMK at the official exchange rate

4. Price for foreigners in MMK at the black market exchange rate

This variability means that your expenses can range from surprisingly affordable to unexpectedly high.

While it may seem tricky, I'm here to guide you through everything you need to know about managing money in Myanmar as a tourist. From understanding the local currency to navigating exchange rates.

The official currency of Myanmar is the Myanmar Kyat (MMK), symbolized as ကျပ်. Despite its Latin spelling, the Kyat is pronounced as "Jet."

Kyat Banknotes:

• 50 MMK

• 100 MMK

• 200 MMK

• 500 MMK

• 1,000 MMK

• 5,000 MMK

• 10,000 MMK

• 20,000 MMK

Important Tips:

• Color Similarity: The 100, 200, and new 1,000 Kyat notes have very similar colors, so be careful not to mix them up. The 500 and 5,000 MMK notes can also be easily confused.

• 20,000 MMK Notes: During my 10-day stay, I never encountered the largest 20,000 Kyat notes, relying mainly on the 10,000 MMK notes.

Carrying Cash:

• At the black market exchange rate, 10,000 MMK was roughly equivalent to $2, and this rate was continually dropping. This meant carrying a substantial stack of cash during travels.

No Coins:

• Coins are not used in Myanmar, so all transactions are conducted with banknotes.

Using credit or debit cards in Myanmar, especially in major cities like Yangon and Mandalay, can be challenging. Despite the theoretical possibility, international sanctions have led to most foreign cards being ineffective in the country.

I personally attempted to use my Revolut, Monese, and Curve cards several times—in supermarkets, restaurants, and even online for bus tickets. Unfortunately, all transactions were rejected.

Bottom Line: Do not rely on using a foreign card in Myanmar. Always carry sufficient cash to avoid any inconveniences.

ATMs Availability:

Big Cities: ATMs are plentiful in major cities like Yangon, with at least three working ATMs at Yangon Airport and many more throughout the city.

Smaller Towns: While smaller towns like Bagan and Kalaw have fewer ATMs, they are still available.

Challenges with Foreign Cards:

• Foreign cards often don't work in Myanmar, including for ATM withdrawals.

• Withdrawing cash from an ATM incurs the official interbank rate, which is significantly worse than the black market rate.

High Fees:

• ATMs charge a withdrawal fee of at least 5,000 MMK.

• Withdrawal limit is 300,000 MMK per transaction.

These factors make ATM withdrawals a poor deal due to high fees and unfavorable exchange rates.

Money-Saving Tip:

• Avoid using ATMs in Myanmar entirely. The high fees and poor exchange rates make it more economical to bring cash.

Withdrawal Fees:

• All ATMs charge a withdrawal fee of at least 5,000 MMK.

• The official interbank rate, kept low by the Myanmar Junta government, results in paying more in foreign currency and receiving less in MMK.

Recommendation:

• Bringing cash is the best option to avoid high fees and unfavorable exchange rates.

When exchanging money in Myanmar, it's essential to understand both the official exchange rate and the black market rate to get the most value for your money. Here's a detailed look:

Official Rate (White Market) For a long time, the value of the Kyat was set at 2,100 MMK for 1 USD. This rate was not pegged to reserves but rather set by the ruling Junta, leading to economic instability. In June 2024, the official rate was adjusted to around 3,200 MMK for 1 USD.

Where It Applies: This rate is applicable if you pay in MMK by card, withdraw MMK from an ATM, or exchange money at the airport (minus the spread/margin).

Tip: Minimize exchanging money at this rate and opt for the black market rate whenever possible to save more.

Black Market Rate The black market rate fluctuates significantly:

July 20, 2024: ~4,800 MMK for 1 USD

10 Days Later: ~5,100 MMK for 1 USD

Early August 2024: ~5,600 MMK for 1 USD

January 2024: ~3,400 MMK for 1 USD (official rate was 2,100)

Recommendations:

Since the black market rate changes rapidly, I can't provide the current rate as you read this. Use the "Myanmar Market Price" app (available on App Store and Google Play) for up-to-date rates, updated 3-4 times daily.

Aim to exchange most of your foreign currency at the black market rate to maximize your savings.

By understanding these rates and where to get the best deals, you'll ensure your money goes further during your travels in Myanmar.

Avoid Trying to Profit from Exchange Rates

While it might seem like a good idea to use the black market rate to obtain Kyats and then exchange them back for USD at the official rate for a profit, this isn't feasible. Official exchanges require you to present a receipt for the obtained cash.

Black Market Exchange

You can exchange extra Kyats back to USD at the black market rate, but expect around a 10% Buy/Sell margin. It's best to exchange just enough for your needs in Myanmar, as the Kyat is worthless outside the country.

Exchanging Money at the Airport

Upon arrival at Yangon International Airport, I found all exchange bureaus closed around 19:00. After asking at Information, a nearby policeman exchanged 10 USD for me at the official rate of 3,200 MMK per dollar.

Remember, exchange bureaus at the airport always use the official rate. It's wise to exchange just enough (10-20 USD) to get to Downtown Yangon, where you can then use the black market rate.

Understanding the Currency Black Market
The currency black market isn't a physical place, but a market where currency exchanges occur outside official channels. When two parties agree on an exchange rate, a transaction happens, hence the term "black" for being unofficial.

Finding the Black Market Rate in Major Cities
In major cities like Yangon and Mandalay, locating someone willing to offer the black market rate is relatively straightforward. Exchange bureaus in the city center often provide these rates, so you won't need to deal with questionable individuals in the markets.

Challenges Outside Big Cities
Exchanging money at the black market rate becomes challenging, if not impossible, in smaller towns. In Bagan, Kalaw, and Nyaung Shwe (Inle Lake), finding someone offering the black market rate is rare.

Best Practice
To maximize your savings, exchange your money in Yangon before traveling deeper into Myanmar. This ensures you get the best possible rate.

When looking to exchange money in Yangon, it's important to know where to go and how to get the best rates. Here are some key tips:

Prime Exchange Areas

• Chinatown: Between Lanmadaw Street and Shwedagon Pagoda Road.
• Around Sule Pagoda: This area is also known for offering good rates.
• Bogyoke Aung San Market: A popular spot for tourists and locals alike.

Finding the Black Market Rate
Many exchange bureaus in Downtown Yangon will display the official rate but may offer the black market rate upon request, often shown on a calculator. Here’s a typical transaction process:

• Ask for the Rate: The clerk or a street vendor will show you the rate (e.g., 4,800 MMK per USD in late July 2024).
• Agree to the Rate: Hand over your foreign currency.
• Receive Kyat: You will receive a thick stack of Burmese Kyat, mostly in 10,000 MMK notes. For example, exchanging 200 USD might give you around 96 notes, verified by a counting machine.

Safety Tips

• Be Cautious: Men may approach you offering to exchange money. While they may not necessarily be scammers, always exchange in daylight and double-check the money before leaving.
• No Documents Needed: In the black market, you won’t need your passport or to sign any documents.

Recommended Exchange Location
EvaTrading Moneychanger: Located on 21st Street in Chinatown, this is a reliable place to exchange money.

By following these guidelines, you can ensure that you get the best rates and have a smooth experience exchanging money in Yangon.

Legality: No, it is not legal to use the currency black market in Myanmar. However, it is generally safe as authorities are not focused on prosecuting individuals for this activity. Both parties involved in the exchange are liable, but many locals engage in these transactions, so you are unlikely to face legal issues.

Is Using the Currency Black Market in Myanmar Ethical?
Ethical Considerations: Yes, using the black market can be considered ethical. The black market reflects a true free market where the exchange rate is determined by mutual agreement, similar to how currencies would freely float in most economies.

While obtaining more Kyat for your currency can contribute to inflation, the money is already in circulation due to macroeconomic policies. By spending this money within Myanmar, you are ultimately supporting the local economy and helping the community.

Using the black market for currency exchange is a practical and ethical choice in Myanmar.

In Myanmar, you may encounter up to four different pricing systems. To simplify your choices and maximize savings, always aim to pay in Myanmar Kyat (MMK).

Key Tips:

• Avoid Online Booking Fees: Avoid booking accommodation online where you are charged in USD. Instead, pay the hotel directly in MMK at the official exchange rate to save money.
• Example from Experience: On my trip, a hotel cost $16 per night online. On-site, the price was $20 USD. The hotel exchanged USD for MMK at a rate of 3,000 to 1, so I paid 60,000 MMK. At the black market rate of 4,800, this effectively meant I paid $12.5, saving $3.5 USD.

By following these guidelines, you can better navigate the different pricing systems in Myanmar and ensure you get the best value for your money.

When planning your trip to Myanmar, it’s essential to bring the right currency. Here’s what you need to know:

Top Currency Choices

• US Dollar (USD): The most widely accepted foreign currency in Myanmar. It offers the lowest exchange margins and the best rates for 100 USD notes.
• Euro (EUR): The second-best option, especially when you bring large denominations.

Other Acceptable Currencies

• British Pound (GBP)
• Chinese Yuan (CNY)
• Thai Baht (THB)
• Australian Dollar (AUD)
• Singaporean Dollar (SGD)

Tips for Exchanging Currency

• Higher Denominations: Bring higher denomination notes to get better exchange rates.
• Condition of Notes: Ensure your notes are new and in good condition. For US dollars, bring notes issued after 2006 without visible signs of wear and tear.

By following these guidelines, you’ll ensure a smooth and cost-effective currency exchange experience in Myanmar.

Planning Your Budget: The amount of cash you need for your trip to Myanmar depends on your travel style and budget. Given that cards are unreliable in Myanmar, it’s essential to carry all the cash you’ll need.

Budget Backpackers: Aim for at least $40 USD per person per day.

Minimalist Travelers: You can manage with as little as $15 USD per day.

Luxury Travelers: Up to $100 USD per day for added comfort and convenience.

General Tip: Myanmar is relatively cheap, but some accommodations can be expensive. Always have a buffer for unforeseen circumstances.

Example Prices (2024 Rates)
These are typical price ranges in MMK, using a black market rate of 4,800 MMK = 1 USD:

• Burmese Tea: 700-1,500 MMK
• Noodle Soup: 2,000-5,000 MMK
• Paratha: 600-1,500 MMK
• Soft Drink (Can): 1,000-2,000 MMK
• Beer (Supermarket): 2,000-4,000 MMK
• Beer (Bar): 5,000-10,000 MMK
• Cafe Latte (Coffee Shop): 5,000-7,000 MMK
• Public Transportation (Yangon): 200-500 MMK
• Shwedagon Pagoda Entrance Fee: 20,000 MMK
• Taxi (Yangon Downtown to Yangon Airport): 15,000-20,000 MMK
• Overnight Bus (Yangon to Bagan, JJ Express): 28,500 MMK
• eBike Rental (Bagan, 5 Hours): 5,000-8,000 MMK (9 hours: 10,000-15,000 MMK)
• Minibus (Bagan to Inle Lake): 40,000 MMK
• Overnight Bus (Kalaw to Yangon, Elite Bus): 40,000 MMK
• Budget Hostel (Yangon): $15-20 USD per night
• Private Room in Mid-range Hotel: 35,000-100,000 MMK
• Boat Tour at Inle Lake: ~15 USD per person
• Trekking (Kalaw to Inle Lake):
• 2 people or fewer: 25 USD per person
• More than 2 people: 15-20 USD per person
• Travel Insurance (SafetyWing): ~22 USD for a 10-day trip

By planning ahead and budgeting correctly, you can ensure a smooth and enjoyable trip to Myanmar.

Bargaining in Myanmar

• Where to Bargain: Always negotiate prices at markets in Yangon and Mandalay. Bargaining is less common in the countryside.
• How to Bargain: Be respectful and don't haggle too aggressively. Prices in Myanmar are generally low, and locals often face economic hardships. Aim for a fair 10% discount in Yangon markets and move on once achieved.

Tipping in Myanmar

• General Practice: Tipping is not customary but is appreciated.
• When to Tip: If someone offers you a tour, such as at Shwedagon Pagoda, they will likely expect a tip. Tip amounts can vary—some visitors give 10,000 MMK, while others may give 50,000 MMK. It's your choice, but local insights can greatly enrich your experience.

By understanding these cultural practices, you can navigate transactions and show appreciation in a way that supports the local economy and enriches your travel experience.