Dollar worth K1,900 at under-the-counter rate as CBM’s reference exchange rate at K1,778

Myanmar’s currency black market witnessed a dollar traded at K1,900 although the Central Bank of Myanmar set the reference exchange rate at K1,778, according to local forex traders.
To strengthen the Kyat value in the local forex market, the CBM set the exchange rate margin within 0.5 per cent of the reference rate for the transaction, selling or buying, according to a notification issued by the CBM on 9 November last year.
Consequently, the informal money exchanges set a dollar value at K1,781 for buying and K1,786 for selling.
Nevertheless, the dollar was traded only between K1,982 and 1,990 on 16 February in the informal financial market.
The CBM sold US$80 million at its auction market within two months, to govern the market volatility. A total of $443.8 million were sold in 2021 as well.
Last 28 September 2021, a dollar value hit an all-time high of over K3,000 in the black market and consequently, the pure gold reached a record high of K2.22 million per tical in history.
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 the market stability of gold and currency plays a crucial role in the trade facilitation.
The objectives of the committee are inspecting and prosecuting market manipulation, checking if there is compliance to payment rules or not in the domestic market, 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 procurement of foreign currency, illegal trade and taking legal actions against price manipulators.
Furthermore, the officials concerned will crack down on those people involved in charging a percentage for money withdrawals at banks as shadow money.
The foreign exchange counter rates were at K2,130 for euro, K1,425 for Singapore dollar, K450 for Malaysian ringgit, K59.30 for Thai Baht, K310 for Chinese Yuan and K16.70 for Japanese Yen on 16 January. — NN/GNLM