On October 22, 2021, the central bank sold $ 30 million at a foreign exchange auction, with an average exchange rate of 1,800 kyats. On October 18, the Central Bank of Myanmar sold a record $ 50 million a day at a foreign exchange auction, with an average exchange rate of 1,820 kyat. The Central Bank of Myanmar has sold up to $ 264.8 million in foreign exchange auctions from February 1 to October 22, 2021, according to data released by the Central Bank of Myanmar. The central bank sold $ 6.8 million in February 2021 at a foreign exchange auction, but not in March. $ 12 million in April; $ 24 million in May; $ 12 million in June; $ 39 million in July; 28 million in August; It sold $ 63 million in September.
Rules for Central Bank Competitive Auction Instructions have been set out and these rules and regulations are in place. In accordance with the instructions, the foreign currency licensed (AD) banks involved in the foreign currency auction are: three state-owned banks; Buying foreign currency with 19 local private banks and 13 foreign bank branches; And sales. The Central Bank of Myanmar’s foreign exchange operations include short-term exchange rate fluctuations; Comparing the exchange rate of Myanmar kyat with one US dollar to the previous day reference exchange rate to reduce depreciation; By comparison, the percentage devaluation of the Myanmar kyat exceeds the stipulated level (opening a competitive auction for the sale of US dollars, the percentage of appreciation of the Myanmar kyat exceeds the stipulated conditions).
Comparing the average Myanmar kyat to the US dollar exchange rate; By comparison, the percentage increase in the value of the kyat against the conditions set by the government has led to the opening of competitive bidding for foreign currency (dollars); To buy foreign currency submitted by AD banks between the highest exchange rate and the lowest exchange rate announced by the Central Bank in the competitive auction. Submissions for sale are purchased and sold by the central bank using the Refinitiv (formerly Thomson Reuters) auction system. For sale Short-term rise in foreign exchange rates; To reduce overcrowding. Opening a tender to buy foreign currency (dollars) if it exceeds the limit;
To buy foreign currency submitted by AD banks between the highest exchange rate and the lowest exchange rate announced by the Central Bank in the competitive auction. Submissions for sale are purchased and sold by the central bank using the Refinitiv (formerly Thomson Reuters) auction system. For sale Short-term rise in foreign exchange rates; To reduce overcrowding. Opening a competitive auction to buy foreign currency (dollars) in excess of the limit; To buy foreign currency submitted by AD banks between the highest exchange rate and the lowest exchange rate announced by the Central Bank in the competitive auction. Submissions for sale are purchased and sold by the central bank using Refinitiv (formerly Thomson Reuters) auction system. For sale Short-term rise in foreign exchange rates; To reduce overcrowding. Rise in foreign exchange rate; To reduce overcrowding. Rise in foreign exchange rate; To reduce overcrowding.
Source: Daily Eleven