December 18, 2016

Breaking News

CBM warns private banks over exchange rate manipulation

Union Minister U Soe Thane discusses exchange rate of foreign currency.
Union Minister U Soe Thane discusses exchange rate of foreign currency.

The Central Bank of Myanmar blamed currency manipulation Tuesday for the kyat’s weakness, urging private banks not to engage in practices that contribute to exchange rate instability.
Despite a range of contributing factors influencing the exchange rate, the central bank has focused on currency manipulation as the reason for  the kyat’s fall.
At a meeting with private bankers Tuesday in Nay Pyi Taw, Governor of the Central Bank of Myanmar U Kyaw Kyaw Maung called on private banks to follow the instructions of the CBM in an effort to stabilize the kyat.
The CBM will inspect private banks to assess their currency trading activities, according to a press release after the meeting.
The central bank set the official reference rate at 1,240 kyat to the dollar Tuesday but the informal rate at foreign exchange counters reached around K1,250.
The currency has continued to fall despite official measures to prop up its value.

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