Kyat depreciation exceeds K3,500 at over-the-counter market

Kyat weakened against the surging greenback at over K3,500 on 25 January at the over-the-counter market after easing around K3,450 for the past three weeks.
Meanwhile, the reference exchange rate of the Central Bank of Myanmar is K2,100.
On 5 December 2023, the Central Bank of Myanmar allowed authorized dealers (private banks) to operate forex exchanges freely as per the market rate determined by supply and demand market forces. Additionally, the CBM notified that outward remittance must comply with the rules and regulations of the Foreign Exchange Management Committee.
The US dollar hit a high of K4,000 in the grey market 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 currency 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 Paragraph 15 of the Foreign Exchange Management Law, domestic residents can keep US$10,000 in 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