Although the Central Bank of Myanmar (CBM) set the reference exchange rate at K2,100 per dollar, it reached K2,850 per dollar in the market, according to local forex traders. The CBM released a statement at a reference rate within the margin of ± 0.3 for selling, purchasing and exchanging foreign currency on 10 August.
Therefore, the banks and business persons including exchange counters set the purchase price at K2,100 per dollar and the selling price at K2,106 per dollar. Despite the set prices, the purchase price was K2,835 per dollar while the selling price was K2,9855 per dollar in the unauthorized market on 17 December. Thus, the CBM declared on 15 December that there is no plan to fix the reference rate, despite a gap between the market price and the reference price.
Some unscrupulous traders spread rumours of possible changes in CBM’s reference rate and the various reasons for rising dollar prices, to manipulate the market, the CBM stated. In addition, CBM sold US$ 108 million, including USD liquidity and salary transactions, into the market in 45 days and announced further selling in the future. Also, the hard currency US dollar hit a high of over K4,500 in the forex market at August-end. Consequently, the CBM sold dollars at its auction market for the sectors in need, to stabilize the exchange rate. A total of US$443.8 million were sold at an auction rate in 2021 as well.
Source: The Global New Light of Myanmar