CNI News
12 November 2024
As a change of government will emerge after the election in the US, economic analysts are discussing what Myanmar should have prepared to make Myanmar kyat strong.
In the US presidential election that was held on 5th November, Democratic candidate Harris was defeated and Republican candidate Donald Trump won after which there will be a change of government.
Because Trump was a person who gave priority to economy, if the US dollar was strong again, the prices of foreign currencies could go up again; in order to control that situation, the controlling policy of the Central Bank must be watched, U Aung Pyae Sone, a businessman, told CNI News.
While seeing the US dollar
" If the economy of the US is strong, the price of the US dollar could be stronger. The price of dollr is 4,440, 4.500 kyats per dollar. We have to carry out so as not to be 5,000 or 6,000 kyats per dollar again. If the foreign investments entered Myanmar, the price of Myanmar kyat will be stronger. If the price of Myanmar kyat falls , the price of dollar will go up in a big way. We have to watch the policy of the Central Bank how it will handle. How long will the Central Bank prop up by injecting lots of the US dollars into the market? There is one thing for sure. Because of the US election, there'll be a change in the price of foreign currencies." he said.
The policies of the new US government may be different from those under the government led by President Biden, Most US citizens vote for Trump because they wanted the difference, said economic analysts.
The US will carry out to make the US dollar strong again and the price of the US dollar could rise, U Htay Aung Kyi, a banking expert, told CNI News.
While dollars are being exchanged for Myanmar kyats
" According to an economic theory, you can't make any currency so strong. If the price of a currency go up extremely, it's not good. If the price falls extremely, it's not good as well. Generally, if the price of dollar goes up, it's good for exporters. But import is needed to export. Any country can't produce 100 percent finished products. Semi-finished products and raw materials have to be imported. South Korea, the US and Japan know economy very well. They will protect their countries from the trade deficit in the international trade. In some way, they seem to be reasons to make their currencies strong." he said.
Depending on the loans from China, the Central Bank might be able to sell foreign currencies including the US dollar, how much it will sell them, which must be questioned, pointed out economic analysts.
At present, the Central Bank has already sold over one billion dollars during 2024.
