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Greenback hits record highs after the CBM ditches reference rate
Source : Daily Eleven View Count : 926
Aug 15, 2018

The value of a US dollar hits a record high of Ks-1488 after the Central Bank has abolished the reference rate for currency exchange.

On August 13, the CBM issued an announcement that abolishes the currency exchange system with a variation of +/- 0.8 per cent of the reference rate fixed in November 2012. It will be applicable to all banks with Authorized Dealer License (A.D) and exchange counters with Money Changer License (M.C).

A money changer said: “It aims to enable banks and exchange counters to buy and sell dollars with outside market prices. It is assumed to be a good change in the monetary market. This shakes the market as ordinary persons don’t understand it. US dollar will depreciate against local currency when there is dollar depreciation in the global market. Today, US dollar price is stagnant in the global market despite the greenback appreciation here in Myanmar.”

On August 14, the value of a US dollar reached Ks-1488 after breaking a record high of Ks-1438 set on December 16, 2016.

In a bid to control the dollar appreciation in the market, the CBM is selling US$ 100,000 to local banks via the auction market every day. In addition, the CBM plans to loan dollars to private banks and sell dollars to importers. On August 14, the CBM’s reference rate stood at Ks-1460 a dollar.

The global dollar price index reached 90.43 points in February, 90.37 points in March, 94.83 points in May, 95.39 in July and 96.03 on August 14.

The minimum and maximum exchange rates was Ks-1323/Ks-1354 in January, Ks-1323/Ks-1331 in February, Ks-1326/Ks-1334 in March, Ks-1324/Ks-1332 in April, Ks-1332/Ks-1351 in May and Ks-1345/Ks-1407 in June and Ks-1384/Ks-1443 in July.

On August 14, the value of a euro was Ks-1675, Singapore dollar, Ks-1072, Malaysian Ringgit, Ks-358, Thai Baht, Ks-44.50, Chinese Yan, Ks-214, Japanese Yen, Ks-13.20 and South Korean Won, Ks-1.40.

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