CBM purchases $43 mln in October at auction rate

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A woman counts US dollars in Yangon. Photo: Supplied

The Central Bank of Myanmar (CBM) purchased US$43 million at an auction rate in October, CBM data showed.
The CBM reportedly purchased $3.7 million on 2 October, $3.8 mln each on 5, 6, 7 and 8 Oct and $7.7 mln on 9 October, $3.7 mln on 19 October, $1.85 mln on 20 October, $3.8 mln on 23 October, $3.7 mln on 26 October and $3.35 mln on 27 October in the auction market, totalling $43 million. Consequently, the US dollar exchange rate is pegged at above K1,300 in Oct-end.
The CBM’s move is aimed at governing the market volatility and supporting the state’s foreign exchange reserves, the CBM stated on 24 July.
At FX auction market, the CBM purchased $39.5 mln in January, $31.5 mln in February, $21 mln in March, $16.7 mln in May, $39.1 mln in June, $31.1 mln in July, $35.6 mln in August, $44.2 mln in September and $43 mln in October respectively. It sold $2.7 million to the private banks in April.
The CBM trades the foreign currency with authorized private banks under the rules and regulations of the FX auction market.
“The instability in the exchange rate posed difficulties to those stakeholders engaged in the agriculture and livestock supply chains including farmers, traders and exporters. That is why the stable exchange rate is of vital importance for the businesses,” the businesspeople pointed out.
At present, the local forex market sees the weak sentiment amid the coronavirus outbreak and the trade disputes between the US and China, the business experts shared their opinions.
This year, the exchange rate moved in the range of K1,465-1,493 in January, K1,436-1,465 in February, K1,320-1,445 in March, K1,395-1,440 in April, K1,406-1,426 in May, K1,385-1,412 in June, K1,367-1,410 in July, K1,335-1,390 in August, K1,310-1,355 in September and K1,282-1315 in October.
Last year, the rates were pegged at K1,508-1,517 in July, K1,510-1,526 in August, K1,527-1,565 in September, K1,528-1,537 in October, K1,510-1,524 in November and K1,485-1,513 in December.
On 20 September 2018, the dollar exchange rate hit an all-time high of K1,650 in the local currency market. — GNLM (Translated by Ei Myat Mon)

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