Yangon, July (26)
Following the announcement by the military council that new 20,000-kyat banknotes would be circulated, the value of the Myanmar currency kept falling, and the dollar and gold markets remain unstable, businessmen told Than Lwin Times.
The military council announced on July 23 that new 20,000-kyat banknotes will be issued to
commemorate the completion of the Vijayabhumi Nimmana Buddha image and the one-year
anniversary of the white elephant Rattha Nandaka, who was found on July 23 last year.
After the announcement of the new banknotes, domestically, the exchange rate of one dollar jumped from 3,100 kyats to more than 3,600 kyats, and the Thai baht exchange rate rose from around 80 kyats to more than 90 kyats.
The domestic gold price also rose from 3.2 million kyats to around 3.6–3.8 million kyats. No longer able to set prices, dealers trade gold as they please.
After the 20,000-kyat banknote crisis caused the value of the Myanmar currency to drop, the prices of rice, real estate, cars, and motorcycles also skyrocketed.
In addition, local people are rushing to withdraw their savings from the bank due to the news that new 20,000-kyat banknotes will be issued, according to private bank officials.
The Central Bank has publicly stated that it is collaborating with law enforcement to take action against individuals who contribute to rising commodity prices and those who are attempting to
encourage foreign exchange rates over the issuance of new currency notes.
The 20,000 kyats currency will be issued in limited quantities beginning July 31, but the military council has not announced how much of it will be circulated, prompting speculation that it would induce inflation.
The circulation of new K 20,000 banknotes by the military council could lead to higher inflation and unemployment, while the people could further suffer from skyrocketing commodity prices, said the economic experts.
News-Than Lwin Times