US blocked Myanmar junta attempt to empty US$1b from New York Fed account

Myanmar’s military rulers attempted to move about US$1 billion held at the Federal Reserve Bank of New York days after seizing power on Feb 1, prompting US officials to put a freeze on the funds, according to three people familiar with the matter, including one US government official.

The transaction on Feb 4 in the name of the Central Bank of Myanmar was first blocked by Fed safeguards. US government officials then stalled on approving the transfer until an executive order issued by President Joe Biden gave them legal authority to block it indefinitely, the sources said.