Myanmar’s currency plunges 60 per cent in a month, with junta powerless to stop economy tanking
- The kyat’s dive is trending on social media as fuel and food prices soar, while many gold shops and money exchanges have shut
- The economic turmoil comes after the military coup in February and as fighting increases while coronavirus infections continue to climb
Many gold shops and money exchanges closed on Wednesday due to the turmoil, while the kyat’s dive trended on social media with comments ranging from stark warnings to efforts to find some humour as yet another crisis hits the strife-torn nation.
“This will rattle the generals as they are quite obsessed with the kyat rate as a broader barometer of the economy, and therefore a reflection on them,” said Richard Horsey, a Myanmar expert at the International Crisis Group.
In August, the Central Bank of Myanmar tried tethering the kyat 0.8 per cent either side of its reference rate against the dollar, but gave up on September 10 as pressure on the exchange rate mounted. The shortage of dollars has become so bad that some money changers have pulled down their shutters.
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“Due to the currency price instability at the moment … all Northern Breeze Exchange Service branches are temporarily closed,” the money changer said on Facebook.