Central Bank Seen Buying Dollars After Kyat Stabilises
Central Bank Seen Buying Dollars After Kyat Stabilises
Myanmar Times, 13 Dec 2018
URL: https://www.mmtimes.com/news/central-bank-seen-buying-dollars-after-kyat-stabilises.html
The Central Bank of Myanmar (CBM) bought US$ 37.74 million from the market between November 27 and December 6.
Some have criticised the CBM for attempting to lift the value of the dollar, which had tapered against the kyat in recent weeks after the US and China reached an agreement to call off further imposition of tariffs.
After the CBM’s dollar buying spree, the exchange rate per dollar in the market increased from K1552 on December 8 to K1556 on December 10, K1561 on December 11 and K1577 yesterday.
U Soe Thein, vice governor of the CBM, said buying dollars in the market is a typical procedure for the CBM. “There are two reasons for it. One is to intervene in the market to prevent the rapid rise and fall in exchange rates. The other reason is to support foreign exchange reserves,” he said.
“Therefore, it is not true that the CBM is attempting to raise the dollar price. It is a normal banking process for the CBM to trade foreign exchange,” he added.
U Than Lwin, senior adviser to KBZ Bank and former deputy governor for the CBM, said ensuring the stability of the exchange rate is one of the main responsibilities of the Central Bank.
“It is not wrong. However, the CBM needs to appoint experts who have a good feel of the market to ensure the price controls are beneficial and not to the contrary,” he said.
Some have criticised the CBM for attempting to lift the value of the dollar, which had tapered against the kyat in recent weeks after the US and China reached an agreement to call off further imposition of tariffs.
After the CBM’s dollar buying spree, the exchange rate per dollar in the market increased from K1552 on December 8 to K1556 on December 10, K1561 on December 11 and K1577 yesterday.
U Soe Thein, vice governor of the CBM, said buying dollars in the market is a typical procedure for the CBM. “There are two reasons for it. One is to intervene in the market to prevent the rapid rise and fall in exchange rates. The other reason is to support foreign exchange reserves,” he said.
“Therefore, it is not true that the CBM is attempting to raise the dollar price. It is a normal banking process for the CBM to trade foreign exchange,” he added.
U Than Lwin, senior adviser to KBZ Bank and former deputy governor for the CBM, said ensuring the stability of the exchange rate is one of the main responsibilities of the Central Bank.
“It is not wrong. However, the CBM needs to appoint experts who have a good feel of the market to ensure the price controls are beneficial and not to the contrary,” he said.