The Central Bank of Myanmar (CBM) reportedly sold US$18 million at an auction rate in May, the CBM data showed.
The CBM’s move aims to govern the market volatility and support the state’s foreign exchange reserves, the CBM stated. The bullish hard currency gained in the local forex market, reaching the peak of above K1,7000 on 12 May. In a bid to control the sharp daily gains of the US dollar, the Central Bank of Myanmar reportedly sold about 6.8 million dollars on 3 February 2021, 6 million dollars each on 22 and 27 April and $18 million in May in the auction market.
At FX auction market, the CBM purchased $39.5 mln in January 2020, $31.5 mln in February, $21 mln in March, $16.7 mln in May, $39.1 mln in June, $31.1 mln in July, $35.6 mln in August, $44.2 mln in September, $43 mln in October, $100,000 in November and $7.8 million in December respectively. It sold $2.7 million in April and $3 million in December 2020. Next, the CBM purchased $1.8 million in January 2021. The CBM trades the foreign currency with the authorized private banks under the rules and regulations of the FX auction market. The instability in the exchange rate posed difficulties to those stakeholders engaged in the agriculture and livestock supply chains including farmers, traders and exporters.
That is why the stable exchange rate is vital of importance for the businesses. 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 of K1,420 and the highest of K1,550 in March. The rate fluctuated between K1,550 and K1,610 in April. 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