Yangon, 29 May
The Central Bank of Myanmar gave a warning that actions will be taken against currency manipulators who spread malicious rumors to destabilize forex market.
The statement of CBM on 26 May said that those who spread rumors may face legal actions under central bank law and regulations under foreign currency management law, and that complaints can be made through the email address of CBM.
The CBM controls the rate of foreign currency in black market, and the recent notification could lead to the rise of hard currency rate, according to an expert in currency exchange.
“The CBM controls the rate of foreign currency in money changer market and black market. They inspected traders in forex market. So, currency exchange in the black market is under restriction. At that time, US dollar exchange rate increased,” the expert added.
The statement also said that without changing the ‘Reference Exchange Rate’ , the CBM is working to ensure steady development of forex market and stable currency exchange rate.
It also said that more foreign currency will be sold at the exchange counters of the banks, and the CBM will continue supporting both US dollar and MMK liquidity.
Although official exchange rate of CBM is K2,100 per US dollar, its black market rate is about K2,950.
The expert remarked that CBM’s exchange rate depends on the demand of foreign currency, and that the hard currency rate is declining due to the plunge in export/import sector of the country.
“The CBM controls the exchange rate. If they need more US dollar, its rate increases a little. They have authority to control the market. Although they guaranteed that the Reference Exchange Rate would not be changed, the change my occur any time. The demand of US dollar has declined together with the decrease in import/export market,” the expert said.
The military council said that 65 percent of earning from exports of various beans, oil crops, corn, rubber and fishery products were forced to exchange to Myanmar kyats under CBM currency rate.
Moreover, the junta has ordered to exchange 65 percent of earning from rice and rice products in February, and that traders remarked that the junta is trying to control all the exports.
News—Than Lwin Times
Photo– Google
Thanlwintimes