Junta desperately tries to control dollar for military spending

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Mawlamyine, 23 August

Myanmar’s military council desperately makes an effort to control the dollar, since much of the military expenditure is being spent on suppressing the Spring Revolution, which was supposed to uproot the military dictatorship, said a financial expert.

Because the junta has been losing ground in combat against revolutionary forces, it has prioritized the use of heavy weapons in addition to air strikes.

On the one hand, the military council, which relies mainly on air force, face a shortage of dollars for military spending, and plan to take action against the illegal keeping of foreign currency.

With the  issuance of 20,000 kyats,  domestic demand for dollars is increasing , and the exchange rate of one dollar climbed to roughly 3,900 kyats in the third week of August.

The junta army primarily uses dollars to purchase military weapons, and as the conflict intensifies, the demand for dollars increases, and makes attempts to control the dollar through various means.

U Tint Lwin, a financial expert and member of the Committee Representing the Yangon Region Hluttaw (CRYU), stated, “The military council’s initiatives are attempts to address the high demand for dollars for military spending”.

In addition, the junta is trying to get dollars for military expenses in various ways, and it has been trying to get dollars from the export and import sectors and people’s savings by issuing various statements.

The Central Bank of Myanmar, controlled by the military regime, announced on August 20 that a resident can possess, for up to six months from the date of receipt, US$ 10,000, or other types of foreign currency in an equivalent amount, if obtained legally by this Person”.

Businessmen also said, “The military council’s dollar controls show that the country is facing a problem of Businessmen also said, “The military council’s dollar controls show that the country is facing a problem of forex insufficiency.”

The military council spent a record defense budget of over 4,000 billion kyat in the current fiscal year, which is hundreds of billions more than the NLD government’s defense budget.

The military council, on the other hand, formed the Foreign Exchange Supervisory Committee in early July to oversee foreign exchange, and the military council still cannot handle foreign currencies, including the dollar.

News-Than Lwin Times

Photo-MOI

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