Daily Exchange Rate in MyanmarMyanmar Daily Exchange Rate
.the central bank establishes the daily auction system. The daily exchange rate can be viewed under the following link.
Federal bank wants to change benchmarks
Myanmar's U.S. Treasury will be reforming its daily U.S. dollars trading system as part of an effort to appeal to the diminishing Kiev, Myanmar's acting U Set Aung said last weekend to the Myanmar businesspolit. On December 1, the Assistant Governor, along with U Myint Swe, Minister of Finance and Public Works, U Kyaw Win and Yangon Region Chief Minister U Phyo Min Thein, held meetings with the Union of Myanmar Federation of Chamber of Commerce and Industry with representatives of businesses and economic organizations.
In the course of the summit, U Set Aung considered steps the bench would take to counter the US dollar's volatile situation after the economy had been asking for a clear political answer for week. He underlined the Bank's benchmarks, which are the daily yardstick for dollar-cyat trade throughout the finance area.
Myanmar's central bank uses the US currency exchange rate for a US currency early bird sale that is open to Myanmar's bank. Mercantile and Moneychangers are limited to trade the greenback over a small range of 0.8 per cent above and below the daily benchmark interest rate. However, Myanmar financiers are complaining that the real gulf between the benchmark interest rate and the interest rate is often too wide.
As a result, clients are looking for exchange brokerage service in the non-formal markets and, in some cases, have stopped their currency use. On December 2, the US central bank's US dollar exchange rate was K1308 against the US Dollar. Meanwhile, on the non-traditional markets, the greenback was quoted at K1357 and K1362.
Mr U Set Aung said there was a misunderstanding in the general opinion that the bank's benchmark rate had somehow increased the exchange rate. Indeed, the effect of the present system's benchmark exchange rate on the exchange rate is very limited, he said. Mr U Set Aung said the reform will mean a benchmark interest rate that better reflect the rate of the MTR.
It will also be necessary to design a system with a sufficient amount of US dollar available to ensure more robust exchange rate stability. "There is one thing the central bank must do - avoid an over- or undersupply of US dollar in the market," he said, and added that the state bank could deliver the keys to letting more dollar into the finance system.
Myanmar's personal banking institutions have been complaining that government creditors, who have accumulated large stocks of dollars during a previous exchange rate service regime, are hesitant to deal in FX on the inter-bank markets. Former Treasury Department Assistant General U Soe Thein said that the auctions system and benchmark interest rate reforms are just one of many problems that cause exchange rateatility.
He said the central bank has started to monitor the inflow of exports revenues into the bank system in cooperation with Customs and found that only 60 per cent of revenues are returned to Myanmar. High level representatives of the Central Bank have said that this is a particular issue for frontier trading with China.