The Central Bank of Myanmar has clarified that inflation is impossible because a new 20,000-kyat banknote will be released in limited amounts and meant to replace old banknotes.

The new banknote release aims to commemorate the completion of the Maravijaya Buddha Image construction and the first birthday of the white elephant. In replacing the old banknotes, just about three 20,000-kyat banknotes will be available per person, the CBM said. 

New banknotes will be exchanged for old ones in limited amounts and, the old ones will be destroyed. Therefore, there could be no inflation due to the new banknote release.

The monetary policy is focused on controlling inflation and supporting the national economy.

Thanks to the monetary policy, ways to stabilize the financial and monetary sectors and improve the payment, auditing and certifying systems, the bank deposits are on the increase, while loans required for businesses are being disbursed.

Moreover, the CIC (currency in circulation) rate has decreased gradually. It was 48% in 2021, 29% in 2022 and 11% in May this year, the CBM said.    

The bank closely monitors foreign currency inflows and outflows ensuring stable exchange rates. The new banknote release will not impact daily foreign currency trade.

Any attempts to manipulate commodity prices or exchange rates are considered harmful to the public, and the CBM is therefore cooperating with relevant authorities to address such actions.

The new banknote will be available in limited amounts from July 31, the CBM announced.