Myanmar's trade deficit at record high

 The trade deficit will set a new record compared to $2.65 billion in the last fiscal year.
 From April 1, 2014 to March 3, the country earned about $10 billion in exports while $15 billion was spent on imports. This is despite the government’s successful attempts in tackling illegal exports.
 A business owner said that while there are several factors to cause the trade deficit, it is obvious that local business will be indirectly affected.
 To boost export income, the Commerce Ministry is planning trade related projects such as Enhanced Integrated Framework, National Export Strategy and National Trade Facilitation Implementation Plan to help develop the country’s trade sector with assistance from abroad.
 High trade deficit is placing huge pressure on the US dollar/kyat exchange rate. Though the official rate of $/Kyat has been kept below 1,030 throughout last week, the market rate were well beyond the level.
"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 market, 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 in the United States.
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.