Mawlamyine, 20 August
As the exchange rate of one Thai baht has risen above 110 kyats, the people of Myanmar may face another crisis for their livelihood, economist experts told Than Lwin Times.
While the price of the Thai baht was gradually rising during the coup, the military regime’s introduction of a new 20,000 kyat banknote led the value of Myanmar currency to suddenly soar to about 90 kyats per Thai baht.
The junta-controlled Central Bank announced on August 14 that Thai baht can be used for international payments and settlements, aiming to deal with the high price of the Thai baht and limit the use of dollars.
The Thai baht exchange rate rose from 110 to 115 kyats on August 19.
An economist considers that even if the Thai baht is designated as a foreign currency, this may not be effective, and the high price of the baht may lead to further crises.
The military council has allowed the Thai baht to be used for international payments and settlements, so it will be convenient for those doing business with Thailand, but the people may face the impact of the high price of the Thai baht again. According to border traders, there is higher demand of baht in the market right now.
The border traders said businesspersons close to the military council buy Thai cash in large
amounts through illegal gambling clubs and sell them in the market, causing the Thai baht to
rise in value.
The prices of medicines, cosmetics, consumer products, and construction materials imported from Thailand have surged by 10 percent to more than 30 percent.
ISP-Myanmar, a research group, announced in early August that Thailand-Myanmar trade earned more than US$8 billion in the fiscal year 2022-2023, the largest among border trades.
News – Than Lwin Times
Photo: Getting Image