Calmly overcoming obstacles

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Lately, the steady rise in the US dollar is on everyone’s mind. This has repercussions in Myanmar’s economy, as the rising dollar value also brings up the price of imports into the country and other commodities.
But this economic and financial repercussion is felt all around the world. The strengthening dollar is causing other currencies to decline in value. One could also say it’s affected by the shifting trade policy of a superpower nation. Myanmar, and many other countries are in the crossfire of two superpowers engaging in a trade war; a sapling caught between two mighty bulls in a heated battle.
The financial repercussion also hits countries which have currencies that are internationally exchanged but since the foreign exchange market is dominated by the US dollar, there is not much they can do. For a country like Myanmar, if neighboring trade countries, such as Thailand, are affected then it will be felt here as well. Myanmar is an import-oriented country that purchases US dollars for its transactions. If demand in the trade market or financial market increases, then value will follow suit.
The fall of the Kyat is the direct result of the rising dollar, as well as the increasing international currency and trade deficit. The international currency repercussion will be present for some time. A similar event transpired in 1997. It is hoped that there will not be extremely worrying scenarios for the public. We have to strive to lower the trade deficit; if not now then surely in the long run. For example, promoting local small and medium enterprises and substituting imports with local products can achieve this.
Of course, this means those in authority need to create opportunities for the private sector to carry out this goal. There needs to be the right set of circumstances to reduce the burden of corporations and businesses and to reduce the people’s worries and anxieties.
The increase in foreign currency demand can heighten the financial repercussion we are facing now, so adequate measures must be taken to reduce qualms and desires. Myanmar is poised for taking on many undertakings and she has natural resources at its disposal.
Therefore, the people should not be overly worried and stockpiling US dollars in a panic. Instead, we all need to calmly respond to the current international currency repercussion by actively participating in the promotion and development of economic success, local production and exports.

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