A clerk counts U.S. dollar banknotes at a foreign currency exchange counter in Yangon, Myanmar, Aug. 16, 2018. U.S. dollar exchange rate rose sharply to 1,512 Kyats against one U.S. dollar in Myanmar domestic market on Wednesday. (Xinhua/U Aung)
YANGON, Aug. 15 (Xinhua) -- U.S. dollar exchange rate rose sharply to 1,512 Kyats against one U.S. dollar in Myanmar domestic market on Wednesday.
Private banks set the rate to 1,480 kyats per dollar on Wednesday morning while the rate gradually went up to over 1,500 kyats per dollar in the afternoon while the Central Bank of Myanmar (CBM) set the rate to 1,475 kyats versus one U.S. dollar.
"This rapid rise of U.S. dollar exchange rate may be the consequence of the CBM's order. This may have some impacts on import market," Dr. Soe Tun, chairman of Myanmar Motor Vehicle Producers and Distributors Association, told Xinhua.
The CBM Tuesday announced removing trading band of +/- 0.8 percent on exchange of Myanmar Kyat against U.S. dollar to control market fluctuation in wake of continuous kyat depreciation.
Some businessmen forecast that prices of commodities and goods could rise due to the high exchange rate in local market and it is forecast that the exchange rate in the international market will continuously jump.
Meanwhile, the CBM is monitoring the foreign currency market to prevent price manipulation, a key reason of exchange rate destabilization.
Also, the CBM has been selling about 100,000 U.S. dollars'notes daily to the private banks to cope with demand, aiming to stabilize currency exchange rate in the country.
