Myanmar currency Kyat is weakening against the Thai Baht in the local forex market, forex price data indicated. In early July, the exchange rate for a Thai Baht was valued only at K60, and 1,670 Baht was exchanged for K100,000. On 3 August, the Baht-Kyat exchange rate was 1/70 and 1,460 Baht was worth K100,000. The local currency value is moving downwards following a volatile dollar. Kyat devalued against the safe-haven US dollar at approximately K2,500 on the over-the-counter market at the moment.
There is a gap of K700 between the informal exchange rate (K2,500) and the regulated reference rate set by the Central Bank of Myanmar (K1,850). The domestic gold price is gaining on the global cues. The pure gold fetches up to K2.3 million per tical (0.578 ounce, or 0.016 kilogramme) in the domestic market. Therefore, some money exchange operators and gold traders are under investigation. During the end of September 2021, a dollar value hit an all-time high of over K3,000 in the gold exchanges and consequently, the pure gold reached a record high of K2.22 million per tical in history.
Under the guidance of the Central Committee on Ensuring Smooth Flow of Trade and Goods, the Monitoring and Steering Committee on Gold and Currency Market was formed on 17 December 2021 as gold and currency market stability play a crucial role in trade facilitation. The objectives of the committee are inspecting and prosecuting market manipulation, checking if there is compliance with payment rules in the domestic market, and proceeding against those unscrupulous traders who intend to interfere with the free and fair operation in the market under the existing laws, by-laws and regulations in line with the official directives, illegal foreign currency holding, illegal trade and taking legal actions against price manipulators.
Source: The Global New Light of Myanmar