Mawlamyine, July (20)
The price of commodities, including imported items, may increase exponentially as a result of the dollar restrictions imposed by the military council, the economists told Than Lwin Times.
In the second week of July, the military council directed that interest and loans borrowed from abroad be suspended, and that Myanmar companies with 35% foreign ownership to exchange their foreign currency for Myanmar kyats.
The dollar exchange rate in the open market has increased to 2,400 kyats as a result of the dollar restrictions, and commodity prices may rise further.
An economist said that the price of imported goods bought in dollars may go up and the situation may worsen.
The dollar restrictions imposed by the Junta probably raised the prices of pharmaceuticals, electronics, and other consumer goods purchased from abroad, which may continue to rise alongside domestically produced goods.
A businessman said, “We don’t really understand the ways in which the authorities are managing. But there is no doubt that the financial situation is a bit chaotic at the moment. We cannot foresee whether things will get worse or better. The country’s economy is in a dire situation.”
Economists have warned that the dollar restriction could further weaken the country’s economy.
The World Bank excluded Myanmar from its prediction for economic growth in 2022 since the country’s economy remained unstable following the coup.
Economists believe that because of the currency limits imposed by the military council, foreign investments may withdraw from the country and local enterprises may find it difficult to operate, which might lead to further hardship for the grassroots.
News – Than Lwin Times