The Central Bank of Myanmar (CBM) sold US$5 million in two days this month at its FX auction rate, according to the auction results released by the CBM. It sold $3 million at its FX auction rate of K1,647 on 2 August and $2 million at K1,650 on 3 August. In addition, the CBM made six-month record sales of $39 million in July. In June, it reportedly sold $12 million. The CBM’s move is to steer the own currency value and govern the market volatility. The bullish hard currency gained in the local forex market, reaching the peak of K1,730 on 12 May from K1,330 in January-end.
At present, the rate is set at K1,665, although it has not reached the record rate in May. The local forex market’s data showed that the dollar exchange rate touched the maximum of K1,345 and the minimum of K1,327 in January 2021. The rate moved in the range of K1,335-1,465 in February. It reached the lowest at K1,420 and the highest of K1,550 in March, while the rate fluctuated between K1,550 and K1,610 in April. The rate fluctuated between K1,585 and K1,730 in May, and it moved to the maximum of K1,595-1,620 in June.
Last month, the rate stood at the maximum of K1,670 and the minimum of K1,626 in July. In 2020, the exchange rate moved in the range of K1,465-1,493 in January, K1,436-1,465 in February, K1,320-1,445 in March, K1,395- 1,440 in April, K1,406-1,426 in May, K1,385-1,412 in June, K1,367-1,410 in July, K1,335-1,390 in August, K1,310-1,355 in September, K1,282-1,315 in October, K1,303-1,330 in November and K1,324-1,403 in December. In 2019, the rates are pegged at K1,508-1,517 in July, K1,510-1,526 in August, K1,527-1,565 in September, K1,528-1,537 in October, K1,510-1,524 in November and K1,485-1,513 in December. On 20 September 2018, the dollar exchange rate hit an all-time high of K1,650 in the local currency market.
Source: The Global New Light of Myanmar