CNI News

23 August 2024

There are reviews and discussions among businessmen, political analysts and financial experts regarding if there are other ways except for political stability to re-control the problem of the rapid decline in the value of Myanmar kyat at present.

The reason why the value of Myanmar kyat is declining and Myanmar people are facing hyperinflation is because of political instability and if there is political stability, the economy could be convenient to an extent, they reviewed.

There was no alternative but political stability to solve the problem and given the current situation, it was difficult to find an exit, U Htay Aung Kyi, a banking expert, told CNI News.

While seeing Thai baht and Myanmar kyat

" In my opinion, there is no medicine now. Two things are needed to solve this problem. The first factor is the method and the second factor is the financial strength. We don't have both of them. To call a spade a spade, foreign funds are needed. We need the help of other countries. We don't have both of them. According to the current situation, in my opinion, it's hard to find an exit." he said.

Every country whose politics was unstable did not face inflation; although Russia and Ukraine were at war, their currencies were normally operating because Ukraine was receiving international support and Russia was a powerful country, pointed out economic analysts.

Although the idea that political stability only would solve the problem is generally right, if Myanmar got enough foreign loans, depreciation of Myanmar kyat could stop, U Aung Pyit Sone, a businessman, told CNI News.

While seeing Indian rupee

" Although Myanmar is rich in natural resources, international sanctions have been imposed on Myanmar. Moreover, we don't get enough foreign loans. When there are political problems like this, international sanctions are lifted after which if they grant a political exit to the government, the people will be in comfortable circumstances as well; the devaluation of Myanmar kyat will also stop, I think." he said.

Although the State Administration Council is planning to hold the election for political stability, there are many challenges to do so, reviewed by political commentators.

During the preparation for holding the election, it was too hard to know to what extent the public would suffer the problem of devaluation of Myanmar kyat, pointed out businessmen, political commentators and financial experts.

Due to the devaluation of Kyat, foreign currencies only are reportedly accepted in the border areas.