By FRONTIER
YANGON — President U Win Myint has nominated Central Bank Governor U Kyaw Kyaw Maung for another five-year term, in a move that is likely to disappoint those hoping for a change in leadership at the bank.
The president informed parliament of the nomination this morning and lawmakers are expected to approve it in the coming days. Kyaw Kyaw Maung’s five-year term was due to expire on July 31. Under the 2013 Central Bank Law, the governor can serve two consecutive terms.
Frontier understands that the decision to re-appoint Kyaw Kyaw Maung, 79, was made following the resignation in late May of Minister for Planning and Finance U Kyaw Win. The minister was replaced by U Soe Win, who had been considered a frontrunner for the Central Bank governor position. Some in the government felt that replacing both the finance minister and Central Bank governor in quick succession could create instability.
Kyaw Kyaw Maung’s nomination ends months of speculation over who the government would tap to lead the bank, but is likely to spur further discussion over the direction and pace of economic reform under the NLD.
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Prior to being nominated by U Thein Sein in 2013, Kyaw Kyaw Maung had already served 10 years in the role from 1997 to 2007, a period marked by a major financial crisis that critics say he did little to avert.
After returning to the post he was soon being attacked for continuing with policies reminiscent of the junta-era. When the currency began weakening in 2015, he refused to let the official exchange rate depreciate and his actions created a parallel market for the kyat. The President’s Office was forced to intervene to restore stability.
Under the National League for Democracy, however, Kyaw Kyaw Maung appears to have become more reform-minded. Last July, the Central Bank released a set of modern prudential regulations which, while signed by Kyaw Kyaw Maung, were closer to International Monetary Fund blueprints than junta-era edicts.
For more on those who had been discussed as potential candidates for the governor position, read our primer from late May.
