Dollar price reaches K2,900 in market despite CBM’s reference rate of K2,100

Although the Central Bank of Myanmar (CBM) set the reference exchange rate at K2,100 per dollar, it reached K2,900 per dollar in the market, according to local forex traders.
The CBM released a statement at a reference rate within the margin of ± 0.3 for selling, purchasing and exchanging foreign currency on 10 August.
Therefore, the banks and business persons including exchange counters set the purchase price at K2,100 per dollar and the selling price at K2,106 per dollar.
Despite the set prices, the purchase price was K2,860 per dollar while the selling price was K2,910 per dollar in the market on 20 August.
The CBM sells the dollars in a bid to control the dollar price rising. In 2021, it sold for $443.8 million.
In September 2021, the foreign exchange rate hit a record over K3,000 per dollar while K2,220,000 per tical of pure gold in the local market.
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