Myanmar Exchange Rate Will Release

Myanmar government is preparing a new monetary policy, namely to change the prevailing exchange rate system, from fixed to floating exchange rates and convert from multiple systems into a single exchange rate. Currently there are very wide difference between the government pegged the exchange rate prevailing on the market and causing distortion.

Indonesian Ambassador to Myanmar Sebastianus Sumarsono disclose it in Mawlamyine, Myanmar, Monday (04/02/2012), as reported by Kompas journalist Orin Basuki.

According Sumarsono, the kyat exchange rate expected to apply later stood at 820 kyat per U.S. dollar. There are currently two prevailing exchange rate, the kyat exchange rate prevailing in the government, including the basis of budgetary revenue and expenditure (budget), which is 6.3 kyat per U.S. dollar. One more is the exchange rate prevailing on the market, ie above 800 kyat per U.S. dollar.

"This year there will be changes in exchange rates. Tukat the old value system to be inefficient," he said.

Besides being used for the basis for setting the state budget, the official exchange rate is pegged to the government also used to be the basis of the transaction at the time of state-owned enterprises (SOEs) to import goods. This makes the state budget and balance sheet is always below fair value.

Reuters news agency reported January 24, 2012 edition, the exchange rate prevailing on the market it is the most widely used for current transactions. In 2009, the exchange rate had dropped to 1000 kyat per U.S. dollar in the event of very large flow of funds into mining. Myanmar is known for its wealth of natural resources, such as jade, gems, timber, and energy.

Compass observation, it is still true control over the traffic rate in Myanmar. Any arrivals from abroad must report the amount of foreign currency exceeding 2,000 U.S. dollars on arrival at the airport. Reuters said, Myanmar is one of 17 countries in the world that still retains the multiple currency system.