Myanmar’s currency situation stabilizes

Myanmar’s military-appointed authorities are making developments in solving the country’s currency problem, with the kyat stabilizing and current measures keeping prices under control.

Sixty percent of the kyat’s value was lost in September. It resulted in high food and gasoline costs, adding to a lot of issues faced by a weak economy that has been stagnant since a military takeover on February 1. Myanmar is on track for a double-digit decline this year.

A new regulation that forced exporters to sell surplus foreign currency to banks within 30 days of receipt made an improvement in supply and lowered exchange rate, Win Thaw, deputy governor of Myanmar’s Central Bank said.

Myanmar has yet to report the status of its foreign currency reserves. However, data from the World Bank showed that the country had only $7.67 billion in reserves at the end of 2020.

Historically, rising commodity costs have been a source of concern for Myanmar’s military regimes. Last week, the military blamed its economic woes on external causes and COVID-19 breakouts.