USD Vs MMK exchange rate hits K1,700 per dollar despite CBM continuously selling dollars at auction-rate to control instability

Kyat is depreciating against the US dollar at K1,700 per dollar in the local foreign exchange market although the Central Bank of Myanmar (CBM) is selling the dollar at auction-rate constantly to control the value of the currency.
The CBM sold US$ 28 million in seven times at its auction rate in August so far, with the average exchange rate for the auction ranging from a minimum of K1,646 to a maximum of K1,663 per dollar.
In July, the bank reportedly sold $39 million at an auction rate. Besides, the bank also sold $12 million at an auction rate in June.
The CBM is conducting an auction for foreign exchange to reduce the fluctuation of foreign exchange rates in a short-term period.
The dollar exchange rate against Myanmar Kyat stood at around K1,330 per dollar at the end-January. Then, the rate jumped to around K1,700 per dollar on 26 August with a rise of over K300 in over sixmonths.
In the first seven months of 2021, the highest and lowest exchange rate is currently fixed around K1,327-1,345 in January, K1,335-1,465 in February, K1,420-1,550 in March, K1,550-1,610 in April, K1,585-1,730 in May, K1,595-1,620 in June and K1,626-1,670 in July. In 2020, the exchange rate moved in the range of K1,465-1,493 in January, K1,436-1,465 in February, K1,320-1,445 in March, K1,395-1,440 in April, K1,406-1,426 in May, K1,385-1,412 in June, K1,367-1,410 in July, K1,335-1,390 in August, K1,310-1,355 in September, K1,282-1,315 in October, K1,303-1,330 in November and K1,324-1,403 in December.
In 2019, the rates are pegged at K1,508-1,517 in July, K1,510-1,526 in August, K1,527-1,565 in September, K1,528-1,537 in October, K1,510-1,524 in November and K1,485-1,513 in December.
On 20 September 2018, the dollar exchange rate hit an all-time high of K1,650 in the local currency market. — NN/GNLM