The global dollar index hovered around 93 points and hit a record high of over 1,700 kyats per dollar

The global dollar index hit around 93 points on August 11 and hit a record high of more than 1,700 kyats in the local market on August 11, according to foreign currency traders. The global dollar index, the highest in six months, hit 89.93 points in December. 91.02 points in January; 91.59 points in February; 90.93 points in March; 90.93 points in April; In May, it was around 91.92 points. In January 2021, the lowest and highest monthly exchange rates in the domestic market were 1333-1355 kyats. In February, it was 1340-1475 kyats.

The lowest and highest monthly foreign exchange rates in the domestic market were 1297-1340 kyats in October 2020; In November 1306-1327 kyats; In December 1326-1405 kyats; In January 2021, it was 1333-1355 kyats. In February, it was 1340-1475 kyats. On August 11, 2021, the exchange rates of other foreign currencies in the domestic market were 1900 Kyats; S $ 1,200; Malaysian ringgit 378 kyats; 50 Thai Baht. On August 9, 2021, the Central Bank of Myanmar sold another 2.5 million dollars at a foreign exchange auction, with the average exchange rate for the auction being 1,646 kyats per dollar, according to the Central Bank of Myanmar.

In August, $ 3 million was auctioned off in a foreign exchange auction. $ 3 million on August 3; $ 4 million on August 4; It sold for $ 2.5 million on August 9. The central bank sold $ 3 million on July 7 at a foreign exchange auction. $ 3 million on the 6th; $ 3 million on the 5th; $ 6 million on the 8th; $ 14 million on July 14; $ 3 million on the 15th; $ 3 million on the 16th; $ 26 million on July 26; $ 27 million on July 27; $ 28 million on July 28; $ 3 million on the 29th; On July 30, it sold for $ 39 million, split 12 times in July and sold for $ 39 million.

Short-term rise in foreign exchange rates; The central bank is launching a foreign exchange auction to reduce inflation and increase foreign reserves. The central bank aims to increase its exchange rate volatility in the short term. A rule-based foreign exchange auction is underway to reduce inflation and implement the two-pronged approach to the country’s foreign exchange reserves. Rules for Central Bank Bidding Instructions have been set out and these rules and regulations are in place. Authorized Dealer (AD) Banks, which are foreign currency trading bidders participating in the foreign currency auction, in accordance with the directives to buy and sell foreign currency with 19 local private banks and 13 foreign bank branches.

Source: Daily Eleven

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Myanmar records trade surplus on lower import

Myanmar’s lower import nearly ten months (1 Oct-23 July) of the 2020-2021 financial year have resulted in a positive trade balance of US$353.644 million, according to data provided by the Ministry of Commerce. Myanmar’s exports surpassed imports in international trade although overall trade value declined compared to the same corresponding period of FY 2019-2020. Nearly ten months, the country’s exports were estimated at $12.3 billion, imports were valued at $11.95 billion this FY. The external trade drastically sank t $24.26 billion from $30.37 billion recorded in the year-ago period. Myanmar’s trade gap was $1.5 billion in the year-ago period, according to data provided by the Ministry of Commerce.

“This is a positive balance of trade. A trade surplus is harmful only when the government uses protectionism,” a trader points out. Myanmar witnessed a slump in exports and imports triggered by the coronavirus impacts this year against the year-ago period. Both sea trade and border trade dropped. The neighbouring countries tightened the border security and restricted the trading in certain border areas. For maritime trade, disruption in logistic sector, spikes in container rates and banking restriction dragged down the trade. Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods, while it imports capital goods, raw industrial materials, and consumer goods.

The country’s export sector relies much on the agricultural and manufacturing sectors. The Ministry of Commerce is trying to reduce the trade deficit by screening luxury import items and boosting exports. Thecountry mainly imports essential goods, construction materials, capital goods, hygienic material and supporting products for export promotion and the import substitution. Myanmar’s trade deficit was pegged at $1.3 billion in the 2019-2020 FY, $1.14 billion in the 2018-2019 FY, $1.3 billion in the previous mini-budget period (April-September, 2018), $3.9 billion in the 2017-2018 FY, $5.3 billion in the 2016-2017 FY, and $5.4 billion in the 2015-2016 FY, according to statistics released by the Central Statistical Organization.

Source: The Global New Light of Myanmar