Chiang Mai (Mizzima) – The Burmese currency which rose to a record high in the past few days fell slightly with the current exchange rate against the US dollar now at 780 kyat per dollar.
The Burmese currency has continuously appreciated for the past month and reached a record high value of 750 kyat per dollar. The exchange rate with the Thai Baht is 4,200 baht per 100,000 kyat.The appreciation of kyat has hit exporters hard with many families dependent on foreign remittances from their loved ones and others who earn their salary in US dollars.
The economist and writer Khin Maung Nyo said that the current exchange rate of the US dollar is 780-790 kyat per dollar and a Foreign Exchange Certificate (FEC) is at 705-720 per one unit of FEC, according to his posting on Facebook.
“After the fall of the dollar has stopped, the commodities prices are rising again”, said his recent posting.
Myanmar Hoteliers’ Association and Myanmar Tourism Board chairman Khin Shwe, who is also the owner of the Zaykabar Company, said that the reason for the remarkable rise in the Burmese currency is a huge inflow of US dollars from the sale of gemstones and state-owned enterprises, lands and buildings.
“The first one is earned more than US$ 2 billion. I heard that about 40 per cent of this huge dollar income flows into the market. They changed these US dollars to Burmese currency that makes Burmese currency appreciate.
Khin Shwe warned that the appreciating Burmese currency could hit the tourism business in the coming peak season of October and November.
‘The tourism companies sold their tours by calculations based on 1,000 kyat per dollar. If they sold tour to Bagan at US$ 500, they will lose 200 kyat for every dollar when the dollar falls to 800 kyat per dollar. The hotels accept US dollars but the meals must be paid in local currency. So they will suffer an impact’, Khin Shwe said.
The government does not have any plan in place to fix the standard exchange rate of the Burmese currency, he said, adding, ‘This is the best time to fix the exchange rate at between 700 and 800 per US$’.
The official exchange rate is fixed at 6.3 per US dollar but an equally important exchange rate is in the black market, which offers a higher rate.
