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The Central Bank of Myanmar sold $ 3 million in a foreign exchange auction, with the average exchange rate 1,665 kyats on 17 May

On May 17, 2021, the Central Bank of Myanmar sold $ 3 million in a foreign exchange auction, with the average exchange rate 1,665 kyats, according to the Central Bank of Myanmar. Monthly sales from January to December 2020 were $ 39.5 million in January 2020; $ 31.5 million in February; $ 21 million in March; $ 16.7 million in May; 39.1 million in June; $ 31.1 million in July; $ 35.6 million in August; $ 44.2 million in September; $ 43 million in October; $ 100,000 in November; It bought $ 7.8 million in December and $ 2.7 million in April 2020. 

It was resold in December 2020 for $ 3 million. It bought $ 1.8 million in January 2021 and sold $ 6.8 million in February. Short-term rise in foreign exchange rates; The central bank is launching a foreign exchange auction to reduce inflation and increase foreign reserves. The Central Bank of the Republic of the Union of Myanmar A regulatory-based foreign exchange auction is underway to reduce inflation and implement the state’s two foreign reserves. 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, the percentage devaluation of the kyat exceeds the stipulated conditions (opening a competitive auction for sale in US dollars, the highest exchange rate announced by the central bank at the central bank auction and the lowest exchange rate announced by the central bank at the auction). As mentioned, the Central Bank of Myanmar is opening a foreign exchange auction in the short term. This is to reduce large losses and increase foreign reserves. The Central Bank of Myanmar (CBM) is conducting a foreign exchange auction to keep the exchange rate at a fixed rate. The Central Bank has stated that it does not intend to increase or depreciate the kyat.

Source: Daily Eleven

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