Kyat extends slump against Thai Baht

Myanmar Kyat continues depreciating against a Thai Baht to K90 in the local forex market, forex price data indicated.
The Thai Baht was exchanged at K90-91 on 22 July. The Kyat devaluation against the Thai Baht was attributed to a drop in export and a rise in imports via the Myawady border, a major trading point for Myanmar-Thailand cross-border trade. Consequently, there is a relatively high demand for Thai Baht, which depreciates local currency value.
Myanmar’s imports outperformed exports in the Myawady border with the neighbouring country Thailand between 1 April and 14 July in the current financial year 2023-2024, with exports worth $164.914 million and imports valued at $367.612 million. As Kyat weakened to the Thai Baht, the prices of imported goods from Thailand will surge.
The figures plunged from $1.314 billion recorded in the year-ago period, showing a sharp drop of $74.372 million.
Myanmar conducts cross-border trade with Thailand via Tachilek, Myawady, Kawthoung, Myeik, Hteekhee and Mawtaung borders. Of them, the Hteekhee border performed the largest trade.
Myanmar carries out cross-border trade with the neighbouring countries China, Thailand, Bangladesh and India. It brings in agricultural products, livestock products, fisheries, minerals, forest products, manufacturing goods and other goods, while capital goods, intermediate goods, consumer goods and raw materials used in CMP enterprises were imported.
Starting from early August 2022, the authorities concerned have been inspecting and interrogating some money changers.
Under the guidance of the Central Committee on Ensuring Smooth Flow of Trade and Goods, the Monitoring and Steering Committee on the 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 or not 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/EM