Today Exchange Rate Dollar to KyatExchange Rate Dollar to Kyat today
com's daily exchange rate.
Burma wants to contain the use of the US dollar to stabilize its economy.
Burma has said it will slow down the US dollar's rally in corporate use to stabilize its overturning local dollar, the Kyat. It has revoke forex licences from companies that range from hotel and restaurant to gulf club and hospital. An increasing affinity for the US dollar has boosted US dollar consumption and resulted in "exchange rate instability".
There is a widespread use of the US dollar in the tourist sector. Myanmar has initiated economical reform and introduced a variable interest rate for the Kyat since the end of the 2011 year. However, the licenses have enabled many to use the dollar for national business while circumventing the country's finance system. Kyat fell more than 20% this year, making it one of the poorest performers in the area.
Dollarization' In a declaration, the country's Federal Reserve said that the government's specific permits to combat'dollarization' had been withdrawn. "There has been a dollarization due to dollar payment and sale, which has led to an increase in demand for the dollar, which weakens the'Kyat' and causes exchange rate instability," the domestic creditor said. At an exchange rate of more than 1,200 kyat to a dollar, large amounts of banknotes need to be stacked if they are not denominated in US dollar.
Following the changes, only bankers and government officials are permitted to exchange US dollar. SWITZERLAND said the move should encourage the use of kyat in making purchases for goods and a range of additional cross-border transactions and reducing the use of currency by stimulating the use of local debt card and plastic card, as well as the use of in-house and on-line banking systems.
Burma is not the only Asian countries to use the US dollar as an informal second language dollar. Cambodia uses not only the Cambodian local money, the riel, but also the US dollar, which is mainly used for residual sums.