Burma's Central Bank to float kyat currency
Rangoon - The Central Bank of Burma on Wednesday announced plans to implement a "managed float" of the kyat currency starting next week.
"The external value of the national currency, the Burmese kyat, will from now on be determined by supply and demand conditions in the exchange market," the bank said.
The managed float means the rate would be set by the bank but would take into account supply and demand and the movements of other currencies. It was to be implemented Sunday.
"This arrangement is part of the reform programme of the government of the Republic of the Union of Myanmar for modernizing the economy," the Central Bank said. Burma has fixed the official kyat rate at 8.50847 to the dollar since 1977, refusing to acknowledge the depreciation of the local currency in real terms to the dollar and other world currencies.
The rate is used for official trade and budget calculations.
The value of the currency on the street is relatively stable at about 810 kyat to the dollar.//DPA
