Further fall of dollar price may affect Myanmar export-import sector

Further fall of dollar price may affect Myanmar export-import sector
Myanmar man counts US dollar banknotes at a money exchange center at downtown area in Yangon. Photo: EPA

Union of Myanmar Federation of Chamber of Commerce and Industry (UMFCCI) general secretary Aye Win said that further fall of dollar exchange rate in the domestic market might affect the export and import sector.

He said this saying at the press conference held on March 6 briefing on the situations being faced by traders and manufacturers caused by the implications of Covid-19 virus epidemic.

“Current US dollar exchange rate has reached below 1,400 kyats level. In this trend, the rate will fall further and then it will adversely affect our export economy,” he said.

The implications of the Covid-19 virus epidemic might affect the domestic economy of the agricultural sector and the export and import sector, he added.

“The exchange rate of US dollar drastically fell to the unexpected level in recent days. In our country, the share of agricultural produce export is high so that current drastic change of exchange rate will give significant and vivid impact on it,” Aye Win said.

Current US dollar exchange rate fell to approximately 1,350 kyats from previous 1,400 kyats over a period of a few days.

Some businessmen said that they would present this situation of the falling US dollar prices to the ministries concerned and central bank for making the necessary regulations to tackle this problem.

REPASSA Company managing director Dr. Zarni Maung Maung said that high dollar demand in domestic market pushed the US dollar exchange rate higher and then this demand fell after the outbreak and spread of Covid-19 virus as the some trading and manufacturing stalled at present. This PEPASSA Company is conducting export and import business of foodstuffs, pharmaceuticals and cosmetic products.

“Drastic fluctuations of exchange rate may give favour and disfavour to exporters and importers or vice versa. The government should contain the drastic and rapid fluctuations of the exchange rate. The fall and rise of exchange rate in the market is normal but it needs to be steady rise and steady fall,” Dr. Zarni Maung Maung said.

For containment of drastic fluctuations of the exchange rate in the domestic market, the Central Bank bought US$3 million in auction on March 6 at the average rate of 1,381 kyats to a dollar. The Central Bank has reportedly bought a total of US$12 million in March.