Foreign exchange rates continue to fall in black market, falling to around Ks 3,300 per US dollar

Published 2 September 2022

EMG

Foreign exchange rates continued to decline in the black market today and dropped to around 3,300 kyats per US dollar this morning, according to foreign currency dealers.

On August 31, the foreign exchange rate increased to 4,300 kyats per dollar in the black market. On September 1, the foreign exchange rate was around 3,500 kyats per US dollar and in the morning of September 2, the foreign exchange rate dropped to around 3,300 kyats per US dollar.

The price of the dollar fell back to around 3,500 kyats after news emerged that the Central Bank of Myanmar (CBM) will provide US$ 200 million through the foreign currency market with the approval of the Foreign Exchange Supervisory Committee to alleviate the high prices of basic commodities caused by high fuel prices.

It is reported that most of the exchange counters that opened the market at a foreign exchange rate of around 2,100 kyats per US dollar did not trade in dollars, but only traded in the black market.

"The dollar price is falling again today as fast as yesterday. Actually, since the price is more than 4,000 kyats, there is no transaction. The actual rate is around 3,700 kyats per US dollar in the black market. Since the exchange rate was around 4,100 kyats per US dollar on August 31, our exchange counter bought only with the rate of 3,700 kyats per US dollar. If the actual transaction price is more than 4,000 kyats per US dollar, there will be no business deal," said a person from the currency exchange counter in Pabedan Township.

The CBM announced on the evening of August 31 that it will provide US$ 200 million through the foreign exchange market to ease the rise in basic commodity prices caused by high fuel prices.

According to the order issued by the CBM, a person working in the fuel industry said that the US$ 200 million was not sold actually and the CBM assigned the private banks as intermediaries.

"The government has allocated US$ 200 million to the market. It is not for sale. The main thing is that the CBM has intervened to prevent US dollars from being bought outside. At this time, if we go out to buy US dollars to import fuel, the price of US dollar will go up. The sale of US$ 200 million should be enough for a maximum of two months. It looked like they have lent US dollars to import fuel. Private banks also have US dollars. There are dollars that have gone in to the banks," said a fuel entrepreneur.