Kyat weakened to K3,800 against the US dollar on 26 March at the over-the-counter market.
The Central Bank of Myanmar (CBM) intervened in the currency market by selling the dollars into the financial market to control the dollar gains in the foreign exchange market.
CBM injected five million yuan and 50 million Thai baht on 22 March, five million dollars on 15 March, 50 million Thai baht on 11 March and seven million yuan and 12 million Thai baht on 5 March for exporters on online trading platforms.
CBM pumped $10 million and 200 million Thai baht on 4 March, totalling $15 million, 12 million yuan and 312 million Thai baht in March so far.
CBM also sold $77.38 million and 850 million Thai baht in February and $68.33 million, 313.5 million Thai baht and 4.2 million yuan in January 2024.
CBM has been working together with law enforcement agencies to inspect and prosecute those involved in forex market manipulation, as per its notification released on 15 March.
The reference exchange rate set by the CBM is K2,100 against a US dollar.
CBM allowed the authorized dealers (private banks) to operate online forex trading freely as per the market rate depending on supply and demand, starting from 5 December.
Additionally, the outward remittance procedures must adhere to the rules and regulations specified by the Foreign Exchange Supervisory Committee.
The kyat-US dollar exchange rate reached approximately K4,000 on 19 August 2023.
Under Section 9 of the Foreign Exchange Management Law, only those entities holding foreign exchange dealer licences are allowed to deal in foreign currencies and traveller’s cheques. Those holding foreign currencies without valid licences and permits will face legal actions under the law, according to the CBM’s notification released on 21 August 2023.
Notification 7/2014 dated 30 September 2014, issued by the Central Bank of Myanmar, affirmingly stated that under stanza 15 of the Foreign Exchange Management Law, domestic residents are allowed to keep US$10,000 at a maximum or equivalent amount of foreign currencies for six months if those foreign currencies that have been unused for over six months have to be exchanged in local currency at the market price through the authorized dealers or deposited into bank accounts.
Those illegally holding foreign currencies are to face legal actions under the Foreign Exchange Management Law, the CBM warned again. — NN/EM
