CNI News
29 September 2024
Questions are emerging among the members of the public regarding which groups or individuals are making profits or losses while there are monetary instability in Myanmar.
Only those who have monetary power could play the foreign currency market and they only were making profits while there were monetary instability, an economic analyst told CNI News.
The monetary market has been in turmoil because authorities had no capacity and monetary strength to control them, he said.
" Those who can play the parcel game make profits. They pushed up the prices of land lots as able as they could. They dropped when the prices reached at the highest point. At that time, those who were able to play the market or those who have financial strength made profits. You need to have financial power to control the market. The Central Bank had enough foreign currencies, for example. When the prices of foreign currencies go up, if it sell out foreign currencies, designating a price level it wants to keep, the prices will be stable. In the same way, if the Central Bank has enough reserve gold, the price can be made stable if it sell out gold when the price goes up quite a bit." he said to CNI News.
While Sr-Gen Min Aung Hlaing was meeting with businessmen
Because the Central Bank didn't sell out dollars to all the entrepreneurs, some of them had to buy dollars at the market price and as there has been an increase in the number of the people who want to go abroad, the demand for dollar has been high, pointed out some people.
Moreover, as some SMEs were not able to go on operating their enterprises due to unstable monetary market reportedly.
Although those who were in need of dollars found it difficult, because businessmen who had to buy dollars at the market price raised the prices and sold the products, they didn't make a loss, Ko Zaw Min Naing, an agricultural and economic advisor, told CNI News.
While seeing a goods seller within the country
" For example, daily income of basic class or blue collars is designated 10,000 kyat. But they don't get that amount in practice. Many consumer goods used in Myanmar come from abroad. They are imported. The products are sold again depending on the price of dollar. For example if you had to pay 2,000 kyats for a product, now you have to pay 8,000 or 10,000 kyats for that product. But income of blue collars hasn't increased. Basic class mainly suffer that. Secondly, middle class. Most people are finding it difficult for their livelihood because their incomes haven't increased yet. Some people have to living on the money they had saved." he said.
Currently, the price of dollar has declined from over 5,000 kyats per dollar to around 4,900 kyats per dollar on 27th September. It was likely because the global price of dollar declined, pointed out economic analysts.
Moreover, they reviewed that the price of foreign currency has been stable for the time being because the banks increase the rates of interests and the Central Bank has sold out much foreign currencies.
