Myanmar’s black market still actively trading

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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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Reading Time: 1 minute

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.

Reading Time: 1 minute

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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