There’s a need to control the frequent currency fluctuations urgently as it may diminish the trust of foreign investors, said Aung Naing Oo, Director-General of Directorate of Investment and Companies Administration at a press conference held at Myanmar Investment Commission on July 9.
“The fluctuation of currency exchange rates has no direct and prompt impact on investment but frequent fluctuation of currency exchange rates may cost the trust of foreign investors,” he added.
In late June, the value of a dollar soared over Ks-1,400. On July 9, the value of a dollar stood at around Ks-1,393 in the local market.
In 2016, the greenback hit a record high of over Ks-1430 a dollar. There was no any impact on investments as the government could control the frequent fluctuation of currency exchange rates in a timely manner.
“The country experienced the similar situations in the past. There is no impact on investment sector last year as the period was short. Inflation has no tangible impact on investments in a short space of time,” he continued.
Since late May, the global dollar index has increased significantly. The minimum and maximum dollar exchange rates in January was Ks-1323-Ks-1354, Ks-1323-Ks-1331 in February, Ks-1326-Ks-1334 in March, Ks-1324-Ks-1332 in April and Ks-1332-Ks-1351 in May and Ks-1345-Ks-1407 in June.