The Central Bank of Myanmar (CBM) joined hands with the authorities for law enforcement activities aiming to investigate and take action against those with manipulative behavior to raise commodity prices and dollar exchange rates as it harms the public interest.

The newly issued note will not affect the currency in circulation. It will be issued and distributed in returns for defaced and damaged notes.

CBM emphasized on 23 July in its press release that the issue of the new K20,000 note will not negatively affect the daily foreign exchange market trading. Responding to the public concerns over the issue of the new banknote, CBM focuses on monetary policies and framework to calculate and hold the specified Reserve Requirement Ratio in the financial system to reduce and curb inflation and contribute to the country’s Gross Domestic Product growth target. The authorized banks raise and reduce the reserve requirement ratio in the financial system rather than interest rate hikes to stimulate businesses. 

CBM is taking a close look at the money supply to increase and decrease the ratio. This new note can be considered a celebration and it will be distributed in a limited number. So, the inflation fear is unlikely. 

CBM is closely observing the foreign currency flow daily to handle inflation and stabilize the foreign exchange market. CBM is also enhancing liquidity swap operations. Those banks with foreign currency reserves are injecting money into the businesses in need. The foreign exchange rate is quite stable, according to the exchange rate transacted on the official online trading platform for interbank transactions among authorized dealers.

As the banks are selling and exchanging the US dollars, there does not impede importing businesses. Thus, there will be no impact on the daily foreign exchange trading with the issue of the new K20,000 note.