With political instability in Burma, currency prices have also fluctuated, with the US dollar rising to nearly 3,000 kyat in the external market, and the World Bank estimates that the dollar shortage will continue in 2022.
Between 2017 and 2019, the kyat appreciated against the US dollar, reaching 1,293 kyat per dollar in October 2020.
With the military coup in 2021, the kyat depreciated sharply, during which time the exchange rate fluctuated, reaching a reference exchange rate of 2,000 kyat in October and reaching almost 3,000 kyat in foreign markets.
Late last December, the central bank set a revised rate of around 1,800 at the rate set by the central bank. Challenges for exchange rates include changes in central bank policy; The World Bank estimates that short-term repercussions could lead to further problems in the short term.
The World Bank’s economist on Burma, Kim Edwards, said: “Many indicators have fallen sharply as private investment has fallen sharply and demand for even potential projects, including the electricity sector, has fallen on hold. The value of the kyat has depreciated in foreign currency, raising the cost of imported goods. In addition, a sharp rise in unemployment, with months of absenteeism; In the long run, displacement will deplete human resources. “Skills and productivity will be significantly reduced.”
During the one year of the military coup, political instability, Social work; In Myanmar, where health is deteriorating, the cash flow problem is growing.
In addition, foreign investment has been steadily rising and instability in the domestic financial market is expected to continue.