CNI News
24 August 2023
Private banks are also among those who are performing to make the dollar price go up for many reasons, pointed out business people and economists.
When the banking system was attacked to make it break down, although the currently-existed banks were helped, some of them are not faithful at present, said Maj-Gen Zaw Min Tun at the news conference of the State Administration Council held in Naypyidaw on 22nd August, 2023.
The speech meant that although the Central Bank has designated that one dollar must be sold at 2,900 kyats, private banks were indirectly selling dollars at a higher price than the designation, said U Thiha Paing, founder of the Via Logistics and Supply Chain, to CNI News.
The workplace of a domestic private bank
" What I understand the speech of Maj-Gen Zaw Min Tun, the government sold dollars to the private banks at 2,900 kyats per dollar. When the private banks re-sell, they should sell a dollar at 2,902 kyats. But they sell indirectly at a higher price than the designation, adjusting the market price. It's happening like that practically. If you go buy dollars at the private banks at that rate, you won't be able to buy. Myanmar Airways International (MAI) sell the passengers at 2,900 kyats per dollar, but they ask 750 kyats as service charge." he said.
Private banks are trading US dollar through intermediaries on their behalf, said U Thiha Paing.
" Private banks have account to account transfer among them. If you go buy at a private bank at 2,900 kyats per dollar, they will say it's sold out. But the bank has employed a man. The bank will say he can sell dollars. Trading is performed by account transfer. The bank doesn't sell dollars directly. The bank sells dollars through a person who is related to the bank." he said.
The workplace of a domestic private bank
Private banks are making financial speculations and traders also are making dollar price speculations. So, not only the private banks, traders also should be controlled, said U Thet Zaw, an economic analyst to CNI News.
" Private banks also make financial speculations. The authorities didn't reveal the names because they thought they shouldn't. Even if the private banks sell dollars at 2,902 kyats per dollar, traders will re-sell dollars at 3,500 kyats per dollar. So, the people get into trouble. Traders are making import and export, calculating at the rate of 3,500 kyats per dollar instead of 2,922 kyats per dollar. This must be controlled or the dollar price won't decline. The gold rice is the same as dollar. The price for one tical of gold should be about 29 lakh kyats. In the market, the price is 37 lakh kyats." he said.
Although the Central Bank has designated that the dollar price is 2,100 kyats per dollar, in the external market, one dollar is up to 3875 kyats.
Due to the increase in the dollar price, the prices of commodities including those of gold, fuel and edible oil are increasing day after day.
