CBM boosts liquidity injection into financial market to control soaring US dollar

The Central Bank of Myanmar (CBM) injected a significant amount of liquidity into the financial market in order to steer the gaining US dollar in the unofficial forex market. The CBM sold nine million US dollars on 29 January, five million US dollars on 26 January, nine million US dollars on 25 January, US$15 million on 15 January, $16 million on 5 January and $12.93 million on 1 January respectively, totaling $66.93 million this month. Nonetheless, the CBM has not revealed the exchange rate for those transactions. The CBM set the reference exchange rate at K2,100 at the present time, while the Kyat against the greenback weakened to exceeding K3,500 at the over-the-counter market. Additionally, the CBM injected US$22.15 million into the fuel oil sector last year, selling $9.72 million on 18 December and $12.43 million on 21 December for fuel oil importing companies. The CBM allowed authorized dealers (private banks) to operate forex exchanges freely as per the market rate determined by the market force of the supply and demand on 5 December 2023. Also, the CBM notified that outward remittance must follow the rules and regulations of the Foreign Exchange Management Committee.—NN/EM