Foreign exchange traders and users prefer US dollar than the FEC.

The current price of FEC is Kyat 1,140 to 1,160 per unit and in USD it is Kyat 1.254 in the grey market. Though the nature of the market is 'grey', the trading of foreign exchange can be openly done in the grey market.

"We ourselves do not want FEC as it is difficult to resell. Most of the buyers prefer green back (USD) than government issued FEC. Though the price is rising, the trading of FEC is sluggish in the market," a wholesale FE trader said.

FEC can be used only in Burma so users prefer to get international hard currency like the USD.

"Only businessmen who use FEC are now trading in FEC in the market," he added.

The government has started a new scheme in fuel sales by selling fuel at the rate of four FEC per gallon since August 22. But most of the consumers prefer to buy the fuel in Kyat, the Burmese currency.

"If we can buy fuel with Kyats, we will buy with Kyats. Why should we buy with FEC? Where can we find this currency? We are not permitted to keep foreign currency here," a vehicle owner from Rangoon said.

Till early last month, the price of USD was Kyat 1,215 and FEC was Kyat 850 per unit.