CNI News
27 July 2023
The public anxiety has increased soon after the Central Bank annoubced that it will issue new 20,000 Kyat notes on 31st July, 2023 and the prices of commodities including gold and dollar have gone up.
So, how to control the anxiety should be explained, some people have pointed out .
To mark the completion of the Maravijaya Buddha Image, in Nay Pyi Taw and to mark the first birthday celebration of a white elephant “Ratha Nandaka”, 20,000 Kyat notes will be issued on 31st July, 2023, said on 23rd July, 2023 in a statement released by the Central Bank.
Soon after the statement was released, the people's anxiety so much increased and the prices of foodstuff, consumer goods, fuel, engine oil, construction materials, gold and Dollar have gone up.
The design of a 20,000 Kyat note
" Ordinary civilians will think that monetary inflation will increase because new banknote that will be issued is the two times of the current highest denomination banknote. if new banknotes that will be issued are 10,000 Kyat notes, the people's interpretation will be indifferent. But when they know that 20,000 Kyat notes will issued, the people who understand or do not understand economics get shocked. So, because the people know or believe that commodity prices will go up, they are buying the goods more and more. But most of our people are still weak in economic knowledge in comparison with the people in the neighboring countries." said U Htay Aung Kyi, an economist to CNI News.
Due to the news saying that new 20,000 Kyat note will be issued, commodity prices have gone up in the Regions and States, said Ma Ma Chay, a housewife from Kyauk Tan Chay Village in Rathedaung Township, Rakhine State, to CNI News.
" Livelihood is not convenient. All the prices are greatly going up. A big packet of tea was paid 6,000-6,2000 Kyats not very long ago. Now, its price is 7,000 to 8,000 Kyats. We are worried prices will go up much more than now. People think that they will face a lot of difficulties after new 20,000 Kyat notes come out." she said.
A greengrocer
That commodity prices are going up is due to the people's extreme anxiety and maybe due to the business people's exploitation as well, said U Thein Tun Oo, director of the Thayninga Institute for Strategy Studies, to CNI News.
" That commodity prices are skyrocketing is related to our people's emotion. Because they are afraid of losing their properties, they quickly buy precious materials such as car, house, gold and so on. That's why, their panic is leading to high prices. But there's one thing to say. When the Central Bank starts issuing 20,000 Kyat notes, if it explains on detail, the people's anxiety can be reduced a little." he said.
Because of rumors and misinformation saying that currently-used banknotes would be abolished after new banknotes came out, the prices of Dollar, gold and fuel were showing signs of rising. Because the 20,000 banknotes would not be massively issued, the people had nothing to worry and the banknotes the State has issued would not be abolished, said Maj-Gen Zaw Min Tun, spokesperson of the State Administration Council on 25th July, 2023.
Section.36 (e) of the 2008 Constitution has imposed that the State does not designate officially-published banknotes as illegal ones.
