Rising Thai baht and continued highway closure force Myawady border traders to halt business activities

Published 21 May 2024

In the global financial market, the rise in the value of the Thai baht along with the US dollar and the continued closure of the New Asian Highway have caused some traders at the Myawady border to suspend their trading activities, according to border business operators.

A business operator at the Myawady border said, "Due to the closure of the Asian Highway, trading has become difficult. With the rise in the value of the baht, many traders have paused their businesses and are waiting. Some traders, however, are still importing essential goods, such as personal and food items, through the Htokawkoe route. Currently, the unexpected rise in the value of the US dollar and the baht is causing difficulties."

In the Myawady border currency market, last year, the Thai baht exchange rate was around 2,000 baht for 100,000 Myanmar kyat (100 baht = 5,000 kyat). As of May 20, 2024, the exchange rate is 900-910 baht for 100,000 Myanmar kyat.

"A product from Thailand that used to cost 500 baht still costs 500 baht now. Previously, a product costing 500 baht could be bought for 25,000 kyat, but now, due to the sudden increase in the baht value, the same product costs 55,500 kyat. The value of the product doesn't change when purchased in baht, but when exchanged from kyat to baht, the price has more than doubled compared to last year," said a trader.

Myanmar traders have to exchange kyat to baht to purchase Thai goods. Last year, 5 million kyat could be exchanged for 100,000 baht, but this year, in May, over 10 million kyat is required, doubling the cost compared to last year.

Due to the depreciation of the Myanmar kyat, those holding kyat are facing losses, while those holding baht are benefiting, according to a currency exchange operator in Myawady.

In the Myawady market, basic food items, fish, prawns, vegetables, and fruits from Thailand are seeing price increases, affecting the consumer market, according to sources from Bayintnaung Market.

Due to the rise in the value of the Thai baht, Myanmar migrant workers in Thailand are seeing an increase in the remittance amount sent back home, although their wages have not increased, according to a Myanmar migrant worker in Thailand.