Kyat-dollar exchange rate rebounds to above K3,000

A Kyat-dollar exchange rate edged up to above K3,000 again in the unauthorized market.
The exchange rate slid to around K2,500 in the past few days.
The Central Bank of Myanmar (CBM) set the reference exchange rate at K2,100 so there is a gap of around K1,000 between the black market’s rate and the official rate.
To strengthen the domestic currency in the local forex market, the CBM set the currency trading band at 0.3 per cent for Kyat to fluctuate between these two specified upper and lower exchange rates for transactions, selling or buying on 10 August 2022.
Therefore, financial institutions including banks and informal money exchanges set a dollar value at K2,100 for buying and K2,106 for selling.
Despite the trading band, the dollar transaction was made with the buying price of K3,030 and the selling price of K3,130 in the grey market.
The gold price climbed up tracking the mild rebound of the dollar in the domestic markets.
Additionally, the hard currency US dollar hit a high of over K4,500 in the forex market in August-end. The pure gold price, therefore, reached a record high of K3.7 million per tical in history.
On 28 September 2021, a dollar value hit a peak of over K3,000 in the black market, pushing the pure gold up to K2.22 million per tical.
Under the guidance of the Central Committee on Ensuring Smooth Flow of Trade and Goods, the Monitoring and Steering Committee on Gold and Currency Market was formed on 17 December 2021 as gold and currency market stability play a crucial role in trade facilitation.
The objectives of the committee are inspecting and prosecuting market manipulation, checking if there is compliance with payment rules in the domestic market, and proceeding against those unscrupulous traders who intend to interfere with the free and fair operation of the market under the existing laws, by-laws and regulations in line with the official directives, illegal foreign currency holding, illegal trade and taking legal actions against price manipulators. — NN/GNLM