Kyat-dollar exchange rate dips to K3,500 in market

Kyat depreciation against the greenback slows down at approximately K3,500 on 7 February at the over-the-counter market after hitting K3,560 at the end of January.
The Central Bank of Myanmar (CBM) intervened in the currency market by injecting the dollars into the financial market to steer the dollar gains in the forex market.
The CBM sold $13 million on 1 February in the forex market and five million dollars and 50 million Thai Baht on 2 February for the exporters/importers and $11 million and 200 million Thai Baht on 5 February, totalling $29 million and 250 million Thai Baht on an online trading platform within five days.
The CBM sold $68.33 million, 313.5 million Thai baht and 4.2 million Chinese yuan in January 2024.
Meanwhile, the reference exchange rate of the Central Bank of Myanmar is K2,100.
On 5 December, the Central Bank of Myanmar allowed authorized dealers (private banks) to operate forex exchanges freely as per the market rate determined by the 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 dollar gained to around K4,000 on 19 August 2023.
Under Section 9 of the Foreign Exchange Management Law, only those entities holding foreign exchange dealer licences can 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.
According to Notification 7/2014 dated 30 September 2014 issued by the Central Bank of Myanmar, affirmingly stating that under Stanza 15 of the Foreign Exchange Management Law, domestic residents are allowed to keep US$10,000 at 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 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