Mizzima
After the news of two state-owned banks, Myanmar Foreign Trade Bank (MFTB) and Myanmar Investment and Commercial Bank (MICB), receiving economic sanctions by the US government, the domestic money changer market was volatile and the US dollar exchange rate rose to over 3,000 Kyats in the evening of 21 June at the closing price.
The money changers said that the US dollar exchange business was disrupted on 21 June after the news that the US would impose economic sanctions on two state-owned banks.
The money exchange market did not open the dollar price until 1 pm on 21 June and the market sources said that the money exchange business might be disrupted and hampered after the Military Council was questioning and detaining some money changers and gold traders.
The US dollar was traded between 3,050-3,100 Kyats against the dollar on 21 June in the domestic money changer market and it was between 2,970-2,980 Kyats yesterday so that it rose by over 100 Kyats in a day.
But the ‘Academy’ brand 24 Karat gold price was stable at 3,130,000 Kyats per tical (approx. 16.3 gms) and the market sources said that the exchange rates of Singapore dollar and Thai Baht were also rising slightly.
The junta’s Ministry of Planning and Finance said that they would facilitate the option for business persons to conduct foreign exchange transfers and transactions, despite the sanctions on the state-owned banks, noting that there was no need to worry about it.
Currently there are 106 military-owned economic entities and establishments and 27 were related to the military including three state-owned banks namely MFTB, MICB and Myanmar Agriculture Development Bank (MADB).
The report issued by the Independent Economists for Myanmar (IEM) says that targeted sanctions on these economic entities and establishments could lead to a reduction of US$ 2 billion in revenues annually for the Military Council.
This IEM report says that the sanctioning of MFTB and MICB would affect the revenues being earned from natural gas, minerals and gems mining, forest products, shipping lines and the aviation industry.
