August 19, 2016

Union minister hails managed floated exchange rate as government achievement

Union Minister for Dr Kan Zaw. Photo: MNA
Union Minister for Dr Kan Zaw. Photo: MNA

A MANAGED floated exchange rate is one of the achievements of the government, and bottom-up plans are measures that can benefit the people, Union Minister for Dr Kan Zaw said at the Pyidaungsu Hluttaw session on Tuesday.
Union Minister Dr Kan Zaw was responding to questions concerning a report on the implementation of national planning in the second half of the 2014-15 fiscal year.
The union minister explained the inflation rate used in the report, saying a representative had pointed out that the inflation rate stands at 5.9 percent.
The union minister said this is an estimated inflation rate for the period from 1 October 2014 to 31 March 2015 based on the calculations of the Central Statistical Organisation and a team led by a deputy governor of the Central Bank of Myanmar.
He added that the inflation rate is calculated not based on gold prices or the US dollar exchange rate but on the prices of over 120 commodities using 2006 as the base year.
However, the inflation rate may vary according to the method of calculation, the union minister said.
Outside sources reported that inflation in Myanmar was at over 10 percent in July and August 2015, he said.
Reforms in the financial sector and the central bank have been carried out in accordance with the 10 points of the Framework for Economic and Social Reforms, and one of the achievements of Myanmar’s reforms was the managed float system for the exchange rate, which had been set for over four decades, according to the union minister.
Another step taken after the managed float system was the central bank’s reform push to make it independent within 36 months, the union minister said.
It has been over one year since reforms for the central bank began, and those measures are still being implemented, he said.
The union minister said the government has adopted bottom-up plans according to the instructions of officials.
“Plans are developed to cover the needs of local people, up to and including Hluttaw representatives from townships, development supporting committees and development affairs committees.  The government has been adopting bottom-up plans for a number of years,” he said.
In response to another question, the union minister said Myanmar is one of the least-developed nations in the region but is not the poorest.
Myanmar, officially informing the UN that it wants to graduate from its Least-Developed Country status, has fulfilled two out of the three relevant requirements, and efforts are also being made to graduate from LDC status by the two vice presidents.
“Myanmar can graduate from LDC status in the 2020-21 fiscal year, according to the requirements of the graduation process, the union minister said.—Myanmar News Agency


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