US dollar slides after CBM sells $3 mln in local forex

The US dollar against Kyat weakened to K1,350 within a week in the local forex market, following the Central Bank of Myanmar selling 3 million dollars, local forex market data indicated. When the dollar value was substantial in the local forex market, the Central Bank of Myanmar (CBM) started to sell 3 million dollars from the state’s foreign exchange reserves at an auction rate on 14 December. A dollar exchange rate stood above K1,400 on 15 December 2020. The rate fell to K1,350 on 21 December, with a decrease of over K50 within a week.

“The dollar gain will benefit the exporters. Yet, it will hike up the local food prices. The currency intervention is required to steer the own currency value, U Than Lwin, senior consultant to Kanbawza Bank shared his opinion. “A too-strong or too-weak dollar is not good for the economy. It is one of the responsibilities of the CBM to control the price. That is why the CBM practised the foreign exchange intervention,” he elaborated.

This year, 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 and K1,303 1,330 in November. Last year, 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 all-time high of K1,650 in the local currency market. 

Source: The Global New Light of Myanmar

Tags: No tags

Leave A Comment

Your email address will not be published. Required fields are marked *