Kyat weakens against dollar at K2,500 despite CBM reference rate at K1,850

Kyat depreciates against the safe-haven US dollar at approximately K2,500 on the over-the-counter market although the Central Bank of Myanmar (CBM) set the reference exchange rate at K1,850, according to local forex traders.
In order 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.
As a result of this, financial institutions including banks and informal money changes set a dollar value at K1,850 for buying and K1,855-1,859 for selling.
Regardless of the CBM’s foreign exchange policy, Kyat devalued above K2,000 starting on 15 July. On 26 July, the selling price of a dollar was K2,490, while the buying price was K2,440 in the unauthorized financial market.
The CBM sold dollars at its auction market for the sectors in need, to govern the market volatility. A total of $443.8 million were sold at an auction rate 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, pure gold reached a record high of K2.22 million per tical (0.578 ounce, or 0.016 kilogramme) 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 gold and currency market stability play a crucial role in trade facilitation.
The objectives of the committee are inspecting and prosecuting market manipulation, checking whether there is compliance with payment rules 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 official directives, illegal foreign currency holding, illegal trade and taking legal actions against price manipulators. — NN/GNLM