CNI News
31 October 2024
The Central Bank of Myanmar has been selling foreign currencies since April for importers and exporters and since it has already sold one billion dollars up to now, questions have emerged whether it can cure the economic problem.
Although dollars have been sold like this, prices within the country are still rising and it has not impct on the businesses yet while the people are still facing hardships, said businessmen.
Whether the dollars the Central Bank sold arrived in the businesses or not should be inspected, U Htay Aung Kyi, a banking expert, told CNI News.
While seeing the headquarters of the Central Bank
" Which ones are important? It must be considered with trade. For the time being, import licenses have been issued. Why? How much is it important? If there is a control like this, it will be good. In fact, foreign currencies are not needed within the country. But importers need them. There are also intentions why foreign products have to be imported in order to export Myanmar products. Semi-products, raw materials and community goods are imported. On the other hand, there is a system if you import how much percentage, how much dollars will be sold to you. But selling dollars now is separate. I want the authorities to inspect whether the dollars sold have arrived in the businesses or not. Next, there's something to think about. Up to how much dollars can be sold and how long will they be sold?" he said.
After the foreign exchange rates were skyrocketed, the Central Bank penetrated dollars into the foreign currency market.
While seeing a fuel oil station
Doing so resolved the fuel oil problem a bit. But it was necessary to sell dollars for long, Ko Nay Khant, an economic commentator, told CNI News.
" Now the fuel oil problem has been solved quite a bit because dollars are being continuously sold by the Central Bank. But it sells dollars little by little. Whether they can be sold any more or not might depend on receiving loans from China. Although selling dollars is good, how long will dollars be sold? The political problem doesn't seem to be finished. Sr-Gen Min Aung Hlaing is to go to China in November. It is hoped that China will provide all-round assistance to Myanmar. A change will emerge. Selling dollars from the Central Bank is good. But the price of dollar is rising a bit." he said.
Because the Central Bank has been sold dollars, the price of dollar has been stable within the country and its price is just around 4,600 kyats per dollar.
