On August 27th, the value of the Myanmar Kyat (MMK) to the US Dollar (USD) hit a record low at 3,400 MMK/US$1.
Similarly, the price of the Baht strengthened against the MMK to a never before seen rate of 100 MMK/?1.
The price of gold bullion has also spiked, reaching a record high of over 29 Lakhs MMK (around 2,900 Baht) per Kyattha(16.3293g).
The recent monetary regulatory changes, the dwindling and lacklustre supply of foreign currency, which cannot keep up with the demand, as well as the announcement on August 26th that the US Federal Reserve will be raising interest rates means money exchange businesses and traders estimate the MMK/US$ rate could go as high as 5,000 MMK.
Due to the recent printing of money in Myanmar and the overall weakening of the MMK, people have opted to trade in their cash for stronger currencies or hard assets, such as real estate and motor vehicles.
Local news media have reported that major gold market players have been summoned to Nay Pyi Taw, to meet with authorities tasked with monitoring gold and currency prices, on the August 27th.
Myanmar has been going through both political and socio-economic turmoil since the global COVID-19 outbreak, which was followed by the military takeover in 2021.
Source: Thai Public Broadcasting Service