Dollar appreciates on record high against Kyat, rising above K1,700

The hard bullish currency has been gaining in the local forex market. A US dollar against Kyat reached the fresh high above K1,700 in history on 12 May, as per local money changer. On 2 February, a dollar value stood only at K1,335, and then, it dramatically rose to K1,720 on 12 May. The exchange rate between the US dollar and Myanmar Kyat showed a large gap of K380 over the past three months. 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, 6 million dollars each on 22 and 27 April in the auction market.

The currency intervention is required to steer the own currency value. It is one of the responsibilities of the CBM to control the price. That is why the CBM practised the foreign exchange intervention. 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 alltime high of K1,650 in the local currency market.

Source: The Global New Light of Myanmar

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