The average inflation rate in 2011 and 2012 was 2.5%. But at the end of 2013 and the beginning of 2014 inflation rose to 5.7% to 6.0%. It is very critical to regulate inflation carefully.
Dr Kan Zaw, Union Minister for National Planning and Economic Development, during the Phyithy Hluttaw session on november 26
It will depend on how the currency is managed. If the people will buy dollars because they are worried the kyat will continue to fall. The Central Bank and the Banks should manage the value through controlling buying and selling. They should only trade for financial reasons and not just accept huge amounts of kyats for no reason.
U Than Cho, Senior Managing Director, KBZ Bank
The kyat value is in line with international trends. The value of the US dollar is rising compared to other currencies. Although other currencies fell only 3 to 5 per cent and the kyat has dropped 8 to 10 per cent. This has to do with people being worried and purchasing more dollars.
U Win Oo, Managing Director, Delco Company Limited
I personally think it will not fall more than that now. Recently demand and supply are at an equilibrium.
U Nyan Lin Htet, Safe Net Union Money Changer
It has to do with the strength of the US dollar. I think the Myamar kyat will not fall any further, because the Central Bank will regulate that. Most countries in our region can manage exchange rates and guarantee stability. Myanmar is in a truncation period and should keep the value of its money stable.
U Tin Tun Aung, Secretary, Union of Myanmar Travel Association (UMTA)
I think the value will stabilise. I think decreases and increases of the value of the kyat are in itself not really a problem. Sharp sudden decreases are a problem, though. Such movements are not good for the nation’s economy. The price of money reflects the country’s actual economic situation.
U Barber Cho, Co-Secretary, Myanmar Forestry Products and Merchants Association
The kyat will be stable, because the Central Bank will step in. There are internal and external causes for the dropping value of the kyat. We can’t change the international economic conditions but we can adjust internal factors. If imports rise, the trade deficit grows. So we need to pay more in dollars and need to purchase more dollars as a result. This increases the exchange rate. To control the value of the Myanmar kyat, the government needs to reduce imports and encourage exports. According to trade figures the import of motor vehicles is high and related to the dropping value of the kyat. The imports of fuel and spare parts are high as well. So we should restrict the import of cars.
U Hla Maung, business journalist
This Article first appeared in the December 4, 2014 edition of Mizzima Business Weekly.
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