Myanmar starts managed currency float in April

Myanmar will begin a managed float of its currency, the kyat, from April 1, the central bank said in a statement published in an official newspaper on Wednesday, March 28.

The central bank statement said the external value of the kyat would henceforth be determined by supply and demand conditions in the exchange market.

The central bank said it would publish a reference exchange rate each day, setting the new system in the context of the government’s efforts to modernise the economy.

The current official exchange rate pegs $1 at 6.41 kyat.

However, analysts said when it is floated, the currency could be valued around 800 kyat to the dollar, which is the current street rate.

Resource-rich Burma wants to attract foreign investment to offset the impact of Western sanctions, however the multiple exchange rates have deterred investors in the past.

Burma is rich in gas, timber and precious stones and has recently said it will open its banking sector and the hotel industry to foreign investors.



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Myanmar will begin a managed float of its currency, the kyat, from April 1, the central bank said in a statement published in an official newspaper on Wednesday, March 28. The central bank statement said the external value of the kyat would henceforth be determined by supply and demand conditions in the exchange market. The central bank said it would publish a reference exchange rate each day, setting the new system in the context of the government's efforts to modernise the economy. The current official exchange rate pegs $1 at 6.41 kyat. However, analysts said when it is floated, the...

Myanmar will begin a managed float of its currency, the kyat, from April 1, the central bank said in a statement published in an official newspaper on Wednesday, March 28.

The central bank statement said the external value of the kyat would henceforth be determined by supply and demand conditions in the exchange market.

The central bank said it would publish a reference exchange rate each day, setting the new system in the context of the government’s efforts to modernise the economy.

The current official exchange rate pegs $1 at 6.41 kyat.

However, analysts said when it is floated, the currency could be valued around 800 kyat to the dollar, which is the current street rate.

Resource-rich Burma wants to attract foreign investment to offset the impact of Western sanctions, however the multiple exchange rates have deterred investors in the past.

Burma is rich in gas, timber and precious stones and has recently said it will open its banking sector and the hotel industry to foreign investors.



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.

 

 

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