Mawlamyine, June (24)

After the US government slapped sanctions on two junta-controlled banks, the dollar exchange rate and gold price became unpredictable and unstable.

On June 21, the US government imposed sanctions on the Ministry of Defense, including the Myanmar Foreign Trade Bank (MFTB) and the Myanmar Investment and Commercial Bank (MICB).

The dollar exchange rate rose to more than 3,200 kyats as a result, and several money exchangers had to halt operations.

With the strengthening of the dollar, the price of one tical of domestic gold has risen to more than 3.2 million kyats, making it impossible to determine the fixed price in the open market.

According to a gold trader, the local gold price cannot be determined because the military council is detaining those trading dollars.

To address the issue of the increase in dollar value, the Central Bank of the Military Council began trading dollars online on June 21 at a rate of 2,900 Kyats per dollar.

The Central Bank of the military council, on the other hand, has directed authorized banks to report online foreign currency trades between banks and purchasers, as well as among buyers.

General Zaw Min Tun, head of the military council’s information team, said on June 20 that even if economic sanctions were imposed, the country’s economy would not be affected because state-owned banks have not opened bank accounts with American banks or cooperated with them.

According to financial specialists, the US government’s sanctions targeting banks that primarily manage foreign currency might have a significant impact on Myanmar’s economy.

News-Than Lwin Times

Photo-Than Lwin Times

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