Myanmar’s economic woes to get worse amid junta’s dollar restrictions

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Mawlamyine, July (17)

The military council’s continued dollar restrictions could deepen the economic crisis of the country, the economists said.

The military council instructed the people to suspend the repayment of interests and loans borrowing from abroad as well as requested Myanmar companies with 35 percent foreign ownership to exchange their foreign currency for Myanmar kyats.

An economist said the war council’s restrictions on the dollar could drive foreign investment away and worsen the country’s economic situation.

“”The dollar is not only a currency, but also a commodity for Myanmar. Its price will change based on demand and supply. Controlling its price is nonsense.  It will be difficult to attract more foreign investment. The current investments will also go out at the right time,” he said adding that during U Ne Win administration, they set a fixed exchange rate for the Myanmar currency to control the dollar, but it was not successful, and there were instances when businesses were in chaos.”

A business owner said most businesses are running slow due to dollar restrictions and are facing new challenges.

The military council tried to control the dollar using various methods because the foreign exchange reserves were low in the country.

Morever, the military council forced the entrepreneurs to trade in dollars and announced that future exports would be permitted only if the traders presented the previous bank receipt.

After the coup, Myanmar’s economy was uncertain in 2022, so the World Bank left Myanmar out of its economic growth forecast.

News – Than Lwin Times

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