Exchange Rate Dollar to KyatDollar to Kyat Exchange Rate
Weakening Kyat dollar exchange rate
We will be talking this weekend about the city' s topical issue - the depreciation of the currency parity. Will it be good or evil for the nation and how should the Central Bank of Myanmar deal with it? Myanmar kyats have collapsed against the US dollars. What caused the decline of the Kyoto Dollars, Ko Naing Ko?
It raised the interest rates and the dollar has softened. This has serious implications for Myanmar's business people who need to buy it for trade. However, it is an asset for visitors visiting Myanmar and native workers earning their salary in US dollar. There' ll always be profits and casualties, as well as the type of currency rates.
US is pursuing a contractive fiscal stance. That is why the Central Bank of Myanmar must keep its eyes open. Myanmar's central bank must make this assessment. It is also important for traders investing in the US dollars, yuans or bahts to see whether it is a foreign exchange conflict or a commercial one, or whether all nations are devaluating their respective exchange rates in order to boost export.
YN: In your opinion, the weakness of the Kyoto Dollars is not due to domestic reasons, but to outside influences? You have told the general population that the fall in the euro against the euro will mean an upward trend in the cost of imports, and this will affect the importing countries. Exportsers will also achieve good rates.
Mr. Ko Hla Win Shwe, as export ing and importing company, can you tell us the effects of a weakening of the currency? Import costs will certainly rise as the value of the Kyoto currency soars. This is a possible consequence of a weakening currency parity. This has the benefit that non-government organization staff and those who are earning their salary in US-Dollars will earn more.
Exportsers can achieve good rates. As well as affecting our own economy, the strengthening of the US currency is also having an impact on other states. YN: The central bank of Myanmar forecast last weekend that the U.S. currency could soar. As you said, the currency will probably not be stable because of a commercial or currency conflict.
What should the Myanmar Federal Reserve do? NK: This is a trillion euro-rage. During the reign of former U Thein Sein and[his advisor] U Zaw Oo, they succeeded in deducting $2.7 billion from the credit Myanmar owing to Paris Club and OECD (Organisation for Economic Development and Cooperation) grant credit.
Governors of the Federal Reserve, Ministers of Finances or Commerce may adapt politics to the countrys futures. Burma currently has over $65 billion in FDI. Imagine that if real changes were implemented as a means of fiscal management, FDI could amount to US$100 billion in good timing. It' s important to raise our country' s savings and investments.
Myanmar's central banking regulator bears an immense burden of responsability for the country's wellbeing. Just like the bank's executive team. In the event of finance and banking bankruptcy, there could also be a rapid reaction to this. Uncle U Kyaw Kyaw Kyaw Kyaw Maung must tell the markets about these schemes and ease their concerns.
It should ensure that there is no economic downturn and that the central government acts as lending of last resort and provides superior loans. It is important for the EIB to be able to communicate directly with the markets. By" bank" I mean the central banking institution of Myanmar, and by" market" I mean retail banking.
It is the responsibility of the ECB to regulate and facilitate this. It should examine non-conventional fiscal policies. Myanmar doesn't even have a two-board system. It is necessary to establish a Political Committee. There' s got to be an Executive Committee for the Federal Reserve.
There should be about 10 persons on the executive committee to explore the market of Myanmar, Thailand, India, the New York Stock Exchange and so on. The central banks are asking that they legalise the buying of goods in Japanese YUANS by means of the Shanghai Stock Exchange. Dealers in the Kachin state and north Shan state have banks in China.
I understand there are a whopping 132 traders from these areas and they have $500 million in their Chinese banks. So I call on the Central Banks to help them and to tackle this one. Business people in the states of Karen and Mon and the Tanintharyi region have also opened banking balances with Thai Bahe.
There' more than 1,000 banking hours and they are importing goods valued at a billion dollar value. My call is for the Central Banks to promote micro-economics so that it can increase the product qualitiy, increase its competitive capacity and conduct business in accordance with the laws and regulation. YN: So you want the[Central Bank] to concentrate on the micro economy and not on the macro economy.
Mr. Ko Hla Win Shwe, since the micro-economy is the main focus of the economy of the importing and exporting sectors, what have you agreed in reaction to the weakening of the Kyoto-Dollars? We are importing large amounts of goods and action should be taken to cut the volume of imported goods. I' m not talking about large areas of industry, but they should be attracting external investments.
The majority of the goods we buy are going to be exported, and I think the more we can cut back on the amount of money we import, the more the use of the dollar will decrease. Initially, the goverment should encourage more FDI in infrastructures such as roads, bridges and electricity production. FDI inflows will generate employment and the economy will make more US dollar.
As far as the power industry is concerned, global investments in renewables amounted to around 320 billion US dollars in 2017. However, Myanmar has hardly been receiving any external investments in power. We need power, and if[the government] implements a renewables strategy, there can be immediate investor. It can use half of the land for production[and the remainder for export].
But there may be other drivers that could stimulate external investments. There is one I have just referred to that could quickly generate attractiveness for attracting external investments. I believe that if both the governments and businesses try to encourage FDI, we will be able to cope with currency movements. In the tourist sector, those who would be spending in our countries can benefit more from the weakening of the currency.
Therefore, action should be taken to encourage travellers after the wet season. a... As a result, the tourist sector can partially compensate for the loss caused by the fluctuation in US dollars. And I think the goverment should pass a systemic schedule when the rains end.