Myanmar Central Bank sells $294.8 mln in past eight months

The Central Bank of Myanmar (CBM) sold US$294.8 million at its FX auction rate to the authorized dealers in the past eight months (Feb-Sept) 2021, according to the auction results released by the CBM.
Last month, the CBM reportedly sold $50 million on 18 October, 30 million each on 22 and 26 October in the auction market, totaling $110 million which is the largest amount sold in the past eight months. Consequently, the exchange rate dipped to below K2,000 in late October, according to the CBM.
Last September-end, a dollar value reached the highest of over K3,000 in history. The CBM, therefore, sold $63 million to the banks in September 2021.
In a bid to strengthen the local currency and govern the market volatility, the CBM reportedly sold about 6.8 million dollars on 3 February 2021, $12 million in April, $24 million in May, $12 million in June, $39 million in July and $28 million in August in the auction market.
The CBM trades the foreign currency with the authorized private banks under the rules and regulations of the FX auction market.
The currency intervention is required to steer the own currency value. It is one of the responsibilities of the CBM to control the price. This is why the CBM practised the foreign exchange intervention.
The current political changes in Myanmar and the COVID-19 impacts affect the currency market. Some people want to hold the hard currency during the difficult times, a market observer shared his opinion.
The local forex market’s data showed that the dollar exchange rate touched the maximum of K1,345 and the minimum of K1,327 in January 2021. The rate moved in the range of K1,335-K1,465 in February. It reached the lowest of K1,420 and the highest of K1,550 in March. The rate fluctuated between K1,550 and K1,610 in April.
The rate fluctuated between K1,585 and K1,730 in May and it moved in the maximum of K1,595-K1,620 last month. The local forex market’s data showed that the dollar exchange rate touched the maximum of K1,345 and the minimum of K1,327 in January 2021. The rate moved in the range of K1,335-K1,465 in February. It reached the lowest of K1,420 and the highest of K1,550 in March. The rate fluctuated between K1,550 and K1,610 in April. The rate fluctuated between K1,585 and K1,730 in May and it moved in the maximum of K1,595-K1,620 in June. The rate stood at K1,626-K1,670 in July. It hit the lowest of K1,660 and the highest of K1,682 in August. The rate edged up to K3,200 and fell to K1,696 in September. Last month, it stayed between K2,430 and K1,830.—KK/GNLM