Mawlamyine, May (31)
Economists and businessmen have said that the dollar has strengthened in recent days due to the military council’s demand for dollars, and the country may face high basic commodity prices again.
The local dollar exchange rate, which was only 2,800 kyats in the black market during the third week of May, has now risen to around 2,960 kyats.
According to economists, the dollar’s value is rising due to the military council’s ongoing foreign deficit in the export and import sectors.
According to figures from the military council’s Trade Department, the export sector received more than $ 16,600 million in fiscal year 2022-2023, but the import sector spent more than $ 17,300 million, resulting in a deficit of more than $ 700 million.
An economist predicts that the continuous increase in the dollar price due to the deficit in the export and import sectors may lead to high domestic prices.
Furthermore, he stated that the military council should seek to stabilize the dollar price because even a slight rise in the dollar price of commodities can have a significant impact on domestic goods.
A businessman told Than Lwin Times that the rise in the price of the dollar could have an impact on the import sector, raising the price of consumer goods.
The dollar strengthened as a result of the rise in demand for dollars on the international market, the strong demand for dollars by local international schools and students who would study abroad, and the buying of dollars by individuals who would go overseas.
On May 26, the junta’s Central Bank announced that it would not change the foreign currency exchange rate in order to stabilize the price of the dollar, but would enhance the sale of foreign currency at bank exchange counters.
Businessmen said that the military council’s set foreign exchange rate of 2,100 kyats per dollar does not work in practice, and they are buying at high prices in the black market.
The dollar exchange rate in Myanmar was just under K 1,300 under the NLD government, but after the military takeover, the price has more than doubled, and demand for dollars continues to surge alongside daily price fluctuation.
News-Than Lwin Times
Photo: CJ
Thanlwintimes