CBM sells $50 mln in two weeks

The Central Bank of Myanmar (CBM) sold US$50 million at its foreign auction rate in two weeks, according to the statement of CBM. According to the sales of US dollars in January, the bank sold $15 million each on 7 and 12 January and, 10 million each on 13 and 14 January. The CBM is selling the foreign currency at its auction-rate through banks to the prioritized sectors especially fuel oil, edible oil and pharmaceutical sectors where the dollars are vastly in need.

The CBM is conduction an auction for foreign exchange to reduce the sudden fluctuation of foreign exchange rates Last a few days, the US dollar exchange rate rose to over K2,000 per dollar in the domestic foreign exchange market. The dollar exchange rate against the Myanmar kyat currently stood at below K2,000 per dollar.

Although the exchange rate on the US dollar hit around K1,330 per dollar the last January, the dollar value reached the highest of over K3,000 last September-end. Last year, the CBM sold $429 million to the sectors especially the oil, fuel and pharmaceutical sectors that need US dollars through the banks. Besides, the Central Bank of Myanmar (CBM) issued the instruction on 9 November that the foreign exchange transitions must be carried out within ± 0.5 per cent of the reference rate established by the CBM. Currently, the CBM selling the US dollar at the auction rate of K1,778 on 14 January.

Source: The Global New Light of Myanmar