Myanmar kyat depreciates, surpassing K3,900 per dollar

Information from the foreign exchange market reported that the Myanmar kyat currency has depreciated again to over K3,900 per dollar.
The foreign exchange rate on 12 April before the Thingyan Festival was K3,890 for a dollar. The rate has surged to K3,960 on 27 April. Therefore, it has increased by K70 per dollar within 15 days.
On the other hand, the Central Bank of Myanmar (CBM) injected foreign currencies into the market to control the skyrocketing dollar exchange rates.
CBM sold five million yuan and 50 million Thai baht on 22 March, US$5 million on 15 March, 50 million Thai baht on 11 March, and seven million yuan and 12 million Thai baht on 5 March to exporters and importers through online trading platforms.
Furthermore, CBM injected $10 million and 200 million Thai baht on 4 March into the foreign exchange market.
Therefore, CBM sold a total of $15 million, 12 million yuan, and 312 million Thai baht in the foreign exchange market in March.
CBM notified on 15 March that cooperation with legal bodies has also been made to be able to prosecute those who manipulate the foreign exchange market under the existing laws.
At present, CBM sets the exchange rate of K2,100 per dollar as the reference rate. On 5 December 2023, CBM relaxed some rules allowing authorized dealers (private banks) to operate online foreign currency trading freely as per the market rate, depending on supply and demand. However, the outward remittance procedures must adhere to the rules and regulations specified by the Foreign Exchange Supervisory Committee.
Section 9 of the Foreign Exchange Management Law prescribes, “Purchases and sales of foreign currencies within the Union shall only be transacted by the authorized persons holding foreign currency exchange licences. Foreign currency exchange licence holders shall only entitle to deal in foreign currencies in cash and traveller’s cheques.”
Accordingly, CBM also notified the public that action would be taken under the Foreign Exchange Management Law if the people were found to hold foreign currencies without permits or licences.
The foreign exchange rate has skyrocketed on 19 August 2023 to K4,000 per dollar. — NN/TMT