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July 03, 2020

Dollar exchange rate dips to K1,386 on low demand despite CBM’s purchase

US dollar exchange rate in Myanmar continues to drop.  Photo: supplied
US dollar exchange rate in Myanmar continues to drop.  Photo: supplied

The US dollar has been sliding against the Kyat in the local currency market, with the exchange rate touching a low of K1,386 per dollar 29 June, money exchangers said.
The Central Bank of Myanmar (CBM) purchased over 30 million dollars from private banks in June to govern the market.
The CBM’s effort seems to keep the exchange rate at above K1,400 when US dollar dip in the global market, a market observer pointed out.
The domestic forex market witnessed the maximum rate of K1,410 this month. Despite the CBM’s dollar purchase, the dollar is currently pegged at below K1,400 in the domestic market.
At present, the global forex market sees the weak sentiment amid the coronavirus outbreak, with the US dollar index of around 97.
At present, exports of rice, corns and pulses are increasing, whereas the local forex market is facing low demand. The weakening dollar might harm export income and the stability of internal forex market, a market observer said.
On 26 June, the CBM had set the reference exchange rate (weighted average market rate) at K1,387 per dollar.
In October last year, the dollar exchange rate had hit a high of K1,600. Thereafter, the dollar has been falling in the local currency market. — Ko Htet (Translated by Ei Myat Mon)

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