Myanmar’s black market still actively trading

myanmar-kyatThis past week, Myanmar’s unofficial currency market began trading the US dollar for over 1,000 kyat, the first time the currency broke that mark since it was floated in early 2012.

The official rate is also already coming close to this level, with 1 US dollar trading at 978 kyat on July 5. The currency has been in steady decline since it was allowed to trade in a managed float in 2012.

In Myanmar, since the kyat was floated, the currency has experienced dramatic fluctuations, leading many citizens to continue relying on the black market for more reliable services and better rates.

“Even though Myanmar has floated its currency, a prominent black market stills exists,” a release by Thura Swiss, a Myanmar-based consultancy, reported.

“Official banks and exchange agencies can halt currency exchange services with little warning, and citizens often turn to the unofficial exchange market where prices are more favourable,” the consultancy said.

Extensive illegal mining, weapons and narcotics trade in Myanmar, the world’s second largest opium grower, also keeps unofficial currency traders in the job.

“Exchanges for high sums of money require proof of acquisition at official exchange counters. With illegal gem, narcotics and weapon trading still prevalent, the black market remains an extensive money laundering machine,” the consultancy has observed.

 

 



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This past week, Myanmar’s unofficial currency market began trading the US dollar for over 1,000 kyat, the first time the currency broke that mark since it was floated in early 2012. The official rate is also already coming close to this level, with 1 US dollar trading at 978 kyat on July 5. The currency has been in steady decline since it was allowed to trade in a managed float in 2012. In Myanmar, since the kyat was floated, the currency has experienced dramatic fluctuations, leading many citizens to continue relying on the black market for more reliable services and...

myanmar-kyatThis past week, Myanmar’s unofficial currency market began trading the US dollar for over 1,000 kyat, the first time the currency broke that mark since it was floated in early 2012.

The official rate is also already coming close to this level, with 1 US dollar trading at 978 kyat on July 5. The currency has been in steady decline since it was allowed to trade in a managed float in 2012.

In Myanmar, since the kyat was floated, the currency has experienced dramatic fluctuations, leading many citizens to continue relying on the black market for more reliable services and better rates.

“Even though Myanmar has floated its currency, a prominent black market stills exists,” a release by Thura Swiss, a Myanmar-based consultancy, reported.

“Official banks and exchange agencies can halt currency exchange services with little warning, and citizens often turn to the unofficial exchange market where prices are more favourable,” the consultancy said.

Extensive illegal mining, weapons and narcotics trade in Myanmar, the world’s second largest opium grower, also keeps unofficial currency traders in the job.

“Exchanges for high sums of money require proof of acquisition at official exchange counters. With illegal gem, narcotics and weapon trading still prevalent, the black market remains an extensive money laundering machine,” the consultancy has observed.

 

 



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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