Myanmar kyat is this year’s best performing currency in Asia (to the US dollar)

Myanmar’s currency, the kyat, became Asia’s best performing currency in US dollar terms so far this year. It rose 11% versus the US dollar, marking the strongest performance of all Asian currencies, according to an evaluation by Bloomberg News published on Dec. 24.

The kyat strengthened from 1,445 on Jan.1, 2020 to 1,336 on Dec. 24, retreating from 1,263 to the US dollar on Oct. 7, foreign exchange data shows.

The rise is mainly attributed to movement restrictions amid the Covid-19 crisis which has resulted in people relying more on the kyat as many money changers were not available to convert their US notes to kyat for essentials such as groceries and medicines, the report cited Than Lwin, senior consultant at Kanbawza Bank and a former deputy governor of Myanmar’s central bank, as saying.

Lockdowns are the culprit

The lockdowns further have drastically reduced discretionary spending on items such as travel, clothes and fashion items and diminished the volume of imports, the report noted.

However, on the downside, a strong kyat is making Myanmar’s exports more expensive in US dollar terms and adversely impacts the country’s competitiveness, which is why the Central Bank of Myanmar is now emphasising currency stability.

Analysts say that when business eventually recovers from the pandemic, it may lead to some depreciation of the kyat as consumer spending and imports are expected to improve, the report said.



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Myanmar's currency, the kyat, became Asia’s best performing currency in US dollar terms so far this year. It rose 11% versus the US dollar, marking the strongest performance of all Asian currencies, according to an evaluation by Bloomberg News published on Dec. 24. The kyat strengthened from 1,445 on Jan.1, 2020 to 1,336 on Dec. 24, retreating from 1,263 to the US dollar on Oct. 7, foreign exchange data shows. The rise is mainly attributed to movement restrictions amid the Covid-19 crisis which has resulted in people relying more on the kyat as many money changers were not available to...

Myanmar’s currency, the kyat, became Asia’s best performing currency in US dollar terms so far this year. It rose 11% versus the US dollar, marking the strongest performance of all Asian currencies, according to an evaluation by Bloomberg News published on Dec. 24.

The kyat strengthened from 1,445 on Jan.1, 2020 to 1,336 on Dec. 24, retreating from 1,263 to the US dollar on Oct. 7, foreign exchange data shows.

The rise is mainly attributed to movement restrictions amid the Covid-19 crisis which has resulted in people relying more on the kyat as many money changers were not available to convert their US notes to kyat for essentials such as groceries and medicines, the report cited Than Lwin, senior consultant at Kanbawza Bank and a former deputy governor of Myanmar’s central bank, as saying.

Lockdowns are the culprit

The lockdowns further have drastically reduced discretionary spending on items such as travel, clothes and fashion items and diminished the volume of imports, the report noted.

However, on the downside, a strong kyat is making Myanmar’s exports more expensive in US dollar terms and adversely impacts the country’s competitiveness, which is why the Central Bank of Myanmar is now emphasising currency stability.

Analysts say that when business eventually recovers from the pandemic, it may lead to some depreciation of the kyat as consumer spending and imports are expected to improve, the report said.



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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