Every country has its own currency. So does our home land, Myanmar. The official exchange rate for Myanmar Kyat is about 6.5 kyats per 1 US dollar. However, if you want to buy US dollars in this rate, you are unable to buy it anywhere. If you ask someone to exchange Myanmar Kyats to US dollars in this incredible rate, he or she would stare at you with uncanny look. The official currency exchange rate in Myanmar is just for dummy. The actual exchange rate in black market is about 760 kyats per 1 US dollar. There is also a restriction for handling foreign currencies in Myanmar. A person holding a US dollar bank account and promised to pay ten per cent of monthly salary as income tax to government can only pocket and trade with US dollars. Otherwise, keeping foreign currency in hand is against the Myanmar government’s law. Therefore, exchanging US dollars into Myanmar kyats at actual exchange rate is totally relied on black market currency traders.
In South East Asia region, most of countries like Lao, Thailand, Cambodia, Vietnam and Philippines are enjoying floating currency system and benefiting from open foreign currency market in their nations. Myanmar is too far away from benefits and civilians are suffering from high inflation rate as well as low income. The most influence factor of foreign currency exchange rate is government’s ever-changing policies in import and export industry. When import restrictions are tight, the demand for US dollar is less and value of Myanmar kyats is raised. When import restrictions less, the demand for US dollar high and value of Myanmar kyats fallen. When export economy is booming, the demand for US dollar is less and value of Myanmar Kyats is fallen too.
Fluctuations in Myanmar currency exchange rate are very common and unpredictable nowadays. We all have experienced about a sudden rise in value of Myanmar currency recently. In my opinion, it is just a result of fallen US dollar value due to economic crisis in America. It is not a result of strengthening in Myanmar economy.
Sandar
3.8.2011
In South East Asia region, most of countries like Lao, Thailand, Cambodia, Vietnam and Philippines are enjoying floating currency system and benefiting from open foreign currency market in their nations. Myanmar is too far away from benefits and civilians are suffering from high inflation rate as well as low income. The most influence factor of foreign currency exchange rate is government’s ever-changing policies in import and export industry. When import restrictions are tight, the demand for US dollar is less and value of Myanmar kyats is raised. When import restrictions less, the demand for US dollar high and value of Myanmar kyats fallen. When export economy is booming, the demand for US dollar is less and value of Myanmar Kyats is fallen too.
Fluctuations in Myanmar currency exchange rate are very common and unpredictable nowadays. We all have experienced about a sudden rise in value of Myanmar currency recently. In my opinion, it is just a result of fallen US dollar value due to economic crisis in America. It is not a result of strengthening in Myanmar economy.
Sandar
3.8.2011
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