USD against MMK hits around K1,800

The exchange rate stood at its highest point of K1,800 per US dollar in the foreign exchange market. Although the dollar exchange rate hit only K1,708 per dollar on 3 September as stated by the Central Bank of Myanmar (CBM), the outside exchange rate is set at K1,800 per dollar. Thus, the local forex market rate is K100 higher than the rate set by the CBM. The CBM sold US$ 28 million in seven times at its auction rate in August to stabilize the US dollar exchange rate. In July, the central bank reportedly sold $39 million at an auction rate. Besides, the bank sold $12 million at an auction rate as well.

The CBM is conducting an auction for foreign exchange to reduce the fluctuation of foreign exchange rates in a short-term period. The dollar exchange rate against Myanmar Kyat stood at around K1,330 per dollar at the end-January. Then, the rate jumped to around K1,800 per dollar on 4 September with a rise of over K400 in over seven months. In the first eight months of 2021, the highest and lowest exchange rate is currently fixed around K1,327-1,345 in January, K1,335-1,465 in February, K1,420-1,550 in March, K1,550-1,610 in April, K1,585-1,730 in May, K1,595- 1,620 in June, K1,626-1,670 in July and K1660-1682 in August.

In 2020, 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, K1,303-1,330 in November and K1,324-1,403 in December. In 2019, 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

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