On the black market, the Kyat recently dropped to a record low of 2,020 (K2,020) against the US dollar, the military-controlled Central Bank revoked its directive of a maximum difference of 0.8 per cent between buying and selling prices of the American currency.
The Central Bank of Myanmar fixed K1,700 per dollar due to the official 0.8 per cent difference. As a result, there was no currency exchange at the banks and other financial organizations, while it occurs in the black market, reaching up to the record high K2,020 per dollar without a limited amount.
“We estimated that the maximum exchange rate would reach K2,800 per dollar. However, the currency value would worsen if the United States faced any crisis in unexpected global political situations,” said a source from foreign exchange services.
“The rising US dollar price is happening only in Myanmar. It is not because of global economic trends, but because of political situations and mismanagements in the country. Although the exchange rate is soaring in the black market, the buying and selling of US dollars are under limited as it is seen as a risky market with possible of serious loss,” added the source.
Myanmar importers have to buy the US dollar for their payment, causing a high price of imported items, as they are struggling to maintain their reliability in the foreign trade sector.