US dollar rally continues
High demand for US dollar has driven up the market rates to a new level, though the official rate has been kept firmly below Ks1,300 per dollar.
"The dollar was traded as high as Ks1,054 during the day on Tuesday before rising to Ks1,060 on Wednesday),” said one money exchanger.
The kyat was 1,039 per dollar at the beginning of this month. So far this month, the Central Bank of Myanmar has kept the official exchange rate at $/Ks1,207.
"In the black marker, it was Ks1,052 – Ks1,054 on Tuesday," a money exchange operator said. "Some dealers even quoted Ks1,056."
At the end of 2011 and the beginning of 2012, the exchange rate was Ks824 per dollar. It reached Ks845 in November 2012. The rate was Ks976 per dollar in November 2013. Last October, the greenback first rose above Ks1,000 against the kyat. While the official rate hit the record high at Ks1,048 on November 19, 2014, the black market rate was Ks1,070.
The dollar has been appreciating against other currencies in recent months, thanks to improved economic indicators.
A rice exporter said that despite the fact, the weakening pace of the kyat against the greenback is volatile, especially in the black market.
The exchange rate was highly volatile last year and the Central Bank of Myanmar blamed it on speculation. The volatility eased when the central bank warned private banks not to influence the exchange rate.
Foreign exchange centres normally quote the selling rate 0.8 per cent above the official reference rate while authorised dealers charge an extra 0.3 per cent.
