CBM sells $13 million in August

THE Central Bank of Myanmar (CBM) has sold US$13 million at its FX auction rate as of mid-August.
In August, the CBM reportedly sold $3 million on 2 August, $2 million on 3 August, $3 million on 4 August, and $2.5 million each on 9 and 12 A ugust in the auction market.
Kyat is depreciating against US dollar at K1,650 in the local forex market. The CBM’s move is aimed at governing the market volatility and strengthening the local currency value, the CBM stated.
The Central Bank of Myanmar (CBM) sold US$93.8 million at its FX auction rate in the past six months (Feb-July), according to the auction results released by the CBM.
The bullish hard currency gained in local forex market, reaching the peak of K1,730 on 12 May from K1,330 in January-end. In a bid to strengthen the local currency, 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 and $39 million in July 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 dollar gain will benefit the exporters. Yet, it will hike up the local food prices. The currency intervention is required to steer the own currency value. The current political changes in Myanmar and the COVID-19 impacts affect the currency market. As some people want to hold the hard currency during the difficult time, 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 in June. The rate stood at K1,625-K1,645 last month.—KK/GNLM