The US dollar has risen to a record high of 2580 kyats, while the value of the Burmese currency is decreasing. The cost of gold increased to a record high of over 2300,000 kyat per kyat in comparison to the US dollar.
No one outside of the Military Council trades at the Central Bank of the Military Council’s predetermined price of 1,850 per dollar. Similar to this, there is a significant price difference in the external market despite the Yangon Region Gold Industry Association setting a price of 2,060,000 kyats per piece of bark gold. At that cost, they are not sold.
The military council issued a number of orders to limit the holding of dollars, which caused the price of the dollar to increase once more.Gold increased in value with the currency.
Prior to that, the exchange rate stayed steady at about 2,200 kyat to the dollar. In the range of 20,000 and 50,000 kyats per kyat, the price of gold remained constant.
however the dollar Market research indicates that the price of gold is now unstable and is only exchanged through buying and selling.
“Today, there are too many daily price swings. The price fluctuation happens quickly as well “explained a representative of a gold store.
The dollar black market was only made possible by the military council’s intentions to control the currency. Imports of food and consumer products as well as raw resources then became more expensive.
According to a Yangon housewife, “Since previously, items have become more expensive. It’s more up now. The shops raise the price of the remaining goods when they hear the sound of the silver price rising “explained he.
According to businesspeople, the military council controls foreign exchange at a rate of 1,850 kyats per dollar, but dollar prices are increasing since they are unable to sell the dollars required for the market and instead rely solely on the international market.
Foreign currency owned by locals is being seized by the Central Bank of the Military Council and sold to importers who require it at the rate of 1,850 kyat per dollar.
However, it has lately been declared that businesses who import drugs and medical supplies must purchase dollars and bring them in according to their own arrangements. The statement suggests that when demand for dollars rises, prices may as well.
The experts stated that 69 countries, including Myanmar, may experience such an occurrence, despite the military council’s assertion that there is no cause for Myanmar to become like Sri Lanka.
At a news conference conducted in Nay Pyi Taw on July 26, General Zaw Min Tun, the Deputy Minister of Information for the Military Council, stated that there is no need for Burma to resemble Sri Lanka and that the country has amassed sufficient amounts of dollars as a reserve currency.
Although it did not specify how much money had been raised, the military council stated that the proper amount had been gathered.
Economic experts have noted that the military council’s declaration and the actual circumstances on the ground differ.
If it’s what they claim, why is the public so anxious about the currency, asked an economist? They are currently suffocating creatures that shouldn’t be suffocated. Into instance, foreigners’ shares could be exchanged for Kyats involuntarily. Such pronouncements that domestically established businesses should stop borrowing foreign currency from other countries have a very negative impact on the business sector. Therefore, things cannot be accomplished without the need for money, he informed DVB.
On the other hand, low-wage workers and the general populace are being impacted by the rising cost of essential food products as well as the value of imported goods as a result of the strengthening dollar.
As a result, there are warning signals that Myanmar could end up like Sri Lanka.
According to an economist, Covid-19 has caused a decline in Sri Lanka’s tourism and tea exports, which has eliminated the nation’s revenue. Health costs are quite expensive as a result of COVID. Additionally, military spending is high. We are similar. Due to COVID, medical expenses have already been incurred. We have a breathing space, thankfully, thanks to border trade. The selling point, however, is no longer able to sell the dollars that the central bank issued as a result of the rise in the price of the dollar. They made an effort to wed this, but they failed. Military spending has expanded significantly in addition to overall spending growth. When they step outdoors, the price of the ammunition they use and the cost of airstrikes in the territories of the resistance are no longer.
The 2020 analysis report on Myanmar’s economy by the World Bank states that the country has 7.67 billion US dollars in foreign reserves.
However, it is hard to determine how much there are as the military council withheld information regarding the volume of foreign reserves following the military takeover.
The Burmese kyat hit a record high of 2,580 kyats per US dollar on July 26 as its value continued to decline. The cost of gold increased to a record high of over 2300,000 kyat per kyat in comparison to the US dollar.