CNI News
4 October 2024
The price of dollar fell to around 4,500 kyats per dollar during the past few days from above 5,000 kyats per dollar and economic commentators are discussing regarding to how much the price of dollar can fall.
If the price of dollar went on falling, it would be above 3,500 kyats only, U Htay Aung Kyi, a banking expert, told CNI News.
" The price of dollar falls because there is no sudden demand at the moment. In fact, 5,00 kyats per dollar is still very high. Because that the price of dollar fall is not too bad. We are relieved from pain. But the real disease cannot be cured. As a matter of fact, market must be created by demand and supply. As long as we don't reach that situation, we can't reach the original state. In my opinion, if the price of dollar falls at the lowest, it just will be above 3,500 kyats." he said.
It was expected that the price of dollar would reach 5,000 kyats in the end of this year and because there has been an increase in the number of migrants within the country due to battles, the price of dollar went up until 7,000 kyats and then fell to 5,000 kyats.
At the moment, the price fell to 4,500 kyats again.
The Central Bank of Myanmar
The reasons why the price of dollar fell was because the global price of dollar fell; the Central Bank of Myanmar has sold dollars and there was no sudden demand for dollars, reviewed some people.
Although the Central Bank was carrying out to make the price of dollar fall to around 4,000 kyats, economic analysts made a comment that it was not possible the price of dollar could fall under 5,000 kyats.
So, that the price fell to around 4,500 kyats was surprising, an economic commentator told CNI News.
" That the price of dollar has fallen this time is quite surprising. We can say the rest all are normal, but the dollar case is abnormal. In 2008 shortly after Cyclone Narghis, the price of dollar plunged. Dollars entered Myanmar by millions from UN. And then, we received a lot of aids from Japan. When dollars enter Myanmar, the price of dollar tend to fall. Now how much international aids can enter Myanmar? Depending on that, we have to estimate how the price of dollar might be." he said.
If the price of dollar went up, it would go up gradually and how high the price would go up could not be estimated, said economic analysts.
The price of dollar could change to an extent depending on the new US government that would come to power after the US election, they reviewed.
