THE Central Bank of Myanmar has increased its reference currency exchange rate from K1,850 per dollar, which remained unchanged over four straight months, to K2,100 per dollar on 5 August.
The CBM announced that the people have to change their foreign incomes into Myanmar kyats starting 3 April within one day at K1,850 per dollar, and exchange other foreign currency at K1,850 per dollar.
However, the reference exchange rate rose to K2,100 per dollar but it must exchange only 65 per cent of export incomes. Therefore, the people can keep 35 per cent of export incomes in dollars. When the CBM reference exchange rate was K1,850 per dollar, it was over K2,500 per dollar in the market. Therefore, it has a large impact on the export of agricultural products and the export volume declined, said the merchants.
Moreover, the dollar price is not stable and the Myanmar kyat price drastically declines. The local gold prices also become high and it reaches K2.4 million per tical of pure gold in the market.
Therefore, the authorities inspected the foreign exchange counters and gold entrepreneurs.
In September 2021, the foreign exchange rate hit a record over K3,000 per dollar while K2,220,000 per tical of pure gold in the local market.
NN/GNLM