KEY ISSUES: Context: Political reconciliation is gaining traction. The main opposition party, National League for Democracy will contest the April by-elections; many political prisoners have been freed; and several ceasefire agreements with ethnic minorities have been signed. The economic reform momentum is strong. Growth and inflation are expected to accelerate modestly... Focus of the consultation: Consistent with past advice, the authorities are moving forward with reforms of the exchange rate system. Discussions centered on improving macroeconomic management to underpin these reforms, and on policies to foster broad-based economic growth... Key policy issues and recommendations: Priorities are establishing the market infrastructure for the planned move to a managed float, and monetary and foreign exchange policy capacity to complement plans to unify the exchange rates. Financial sector modernization remains essential to support the reform process and improve financial intermediation. Fiscal policy priorities include ending deficit monetization, reprioritizing spending, and increasing nonresource revenues for development spending within a medium-term fiscal framework. Structural reforms should aim to increase agricultural productivity, and foster private sector development... Exchange rate arrangement: Myanmar continues to avail itself of transitional arrangements under Article XIV, although it has eliminated all Article XIV restrictions. Myanmar maintains exchange restrictions and multiple currency practices subject to Fund approval under Article VIII. The exchange rate regime is classified as other managed arrangement.