CNI News
22 August 2024
Because the value of Myanmar kyat has plunged, only foreign currencies are accepted more than before instead of Myanmar kyat, according to businessmen and locals.
It was because the value of Myanmar kyat has not been strong; if the value of kyat stopped at some point, although there could be no problem, because the inflation rate was getting worse, the problem had emerged, U Aung Pyit Sone, a businessman, told CNI News.
" Because the exchange rate is unstable, you can't put blame on businessmen and shop owners in the border areas. Although those who don't accept their country's money within their country can be taken action against, you bought a product at 100 kyats and sold it at 120 kyats. But when you have to pay for it at 150 kyats again, it's not convenient. So, they will sell their products at Chinese yuan or Thai baht whose value is stable. If people who live in border areas earn foreign currency as their income, it's no problem. But while you earn Myanmar kyat as your income, if you have to use a foreign currency, it's difficult for your livelihood." he said.
Those who live in border areas had been using both Myanmar kyat and foreign currency at the same time since before.
10,000 Myanmar kyat note and 5,000 Myanmar kyat notes
However, some shops in Muse City on the China-Myanmar border accept Chinese yuan only without accepting Myanmar kyat. Moreover, when fuel oil is bought at kyat, it can be bought on a limited basis, and if it is bought at Thai baht, it can be bought as much as they want.
It is necessary for local authorities to tackle the problem, pointed out people. The value of Myanmar kyat falls while that of foreign currencies rise.
It means the country has gone poor, U Htay Aung Kyi, a banking expert, told CNI News.
" In comparison with other countries, our country has gone poorer. Mainly, the economic system has been wrong for a long time. If this keeps up, it's getting worse. The more the value of our country's money fall, the poorer our country is." he said.
The Central Bank of Myanmar reported on 14th August that it would raise bank interest rates starting from 11th September.
Because there is a wide gap of value between the Myanmar kyat and foreign currencies, those who live in border areas and businessmen are facing a crisis.
