Kyat-Dollar exchange rate slides to K2,800

KYAT-US Dollar over the coun­ter rate dipped to K2,800 in the local forex market, the money changers said.

Last August, the dollar hit K4,500 in the grey market. At present, the dollar was ex­changed at K2,860 for buying and K2,880 for selling.

However, the Central Bank of Myanmar (CBM) set the reference exchange rate at K2,100.

 

To strengthen the domes­tic currency in the local forex market, the CBM set the cur­rency trading band at 0.3 per cent for the Kyat to fluctuate between these two specified upper and lower exchange rates for transactions, selling or buying, according to a di­rective issued by the CBM on 10 August 2022.

Therefore, financial insti­tutions including banks and informal money changes are instructed to set a dollar value at K2,100 for buying and K2,106 for selling. Yet, trading with those specific rates is not seen in the market.

Last August, a dollar value hit a peak of over K4,500 in the black market, pushing pure gold up to a record high of K3.7 million per tical.

Consequently, the CBM sold dollars at its auction mar­ket for the sectors in need, to control the soaring dollar.

A total of $443.8 million were sold at an auction rate in 2021 as well.

At the end of September 2021, the dollar value hit a high of over K3,000, resulting in a record high of the pure gold price at K2.22 million per tical.

Under the guidance of the Central Committee on Ensur­ing Smooth Flow of Trade and Goods, the Monitoring and Steering Committee on Gold and Currency Market was formed on 17 December 2021 as gold and currency market stability play a crucial role in the trade facilitation.

The objectives of the com­mittee are inspecting and pros­ecuting market manipulation, checking if there is compliance with payment rules in the do­mestic market, and proceeding against those unscrupulous traders who intend to inter­fere with the free and fair op­eration of the market under the existing laws, by-laws and regulations in line with the official directives, illegal for­eign currency holding, illegal trade and taking legal actions against price manipulators. — NN/GNLM