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Myanmar Central Bank sells nearly $444 mln in Feb-Dec period

The Central Bank of Myanmar (CBM) sold US$443.8 million at its FX auction rate to the authorized dealers in the past 11 months (February-December) 2021, according to the auction results released by the CBM. Consequently, the exchange rate was pegged at around K1,700-1,800 in December-end, according to the CBM. In a bid to strengthen the
local currency and govern the market volatility, the CBM reportedly sold about 6.8 million dollars on 3 February 2021, $12 million in April, $24 million in May, $12 million in June, $39 million in July, $28 million in August, $63 million
in September, $110 million in October, $31 million in November and $118 million in December in the auction market.

The CBM trades the foreign currency with the authorized private banks under the rules and regulations of the FX 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. This is why the CBM practised the foreign exchange intervention. Additionally, the use of Yuan or Kyat in the bilateral transaction is officially allowed in the border areas between Myanmar and China in a bid to encourage the trade, according to the notification released by the Central Bank of Myanmar on 14 December, in the exercise of the power conferred by Sections 17 and 22 of the Foreign Exchange Management Law.

This move is aiming to boost the bilateral cross-border trade, facilitate the trading and bilateral transaction and increase the use of domestic currency in line with the objectives of ASEAN Financial Integration. 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. The rate fluctuated between K1,585 and K1,730 in May and it moved to the maximum of K1,595-1,620 last month.

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. The rate fluctuated between K1,585 and K1,730 in May and it moved to the maximum of K1,595-1,620 in June. The rate stood at K1,626-1,670 in July. It hit the lowest of K1,660 and the highest of K1,682 in August. The rate edged up to K3,200 and fell to K1,696 in September. In October, it stayed between K2,430 and K1,830. The rate was pegged around K1,700-1,800 in November and December.

Source: The Global New Light of Myanmar

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