KYAT-US Dollar over the counter rate dipped to K2,800 in the local forex market, the money changers said.
Last August, the dollar hit K4,500 in the grey market. At present, the dollar was exchanged at K2,860 for buying and K2,880 for selling.
However, the Central Bank of Myanmar (CBM) set the reference exchange rate at K2,100.
To strengthen the domestic currency in the local forex market, the CBM set the currency trading band at 0.3 per cent for the Kyat to fluctuate between these two specified upper and lower exchange rates for transactions, selling or buying, according to a directive issued by the CBM on 10 August 2022.
Therefore, financial institutions including banks and informal money changes are instructed to set a dollar value at K2,100 for buying and K2,106 for selling. Yet, trading with those specific rates is not seen in the market.
Last August, a dollar value hit a peak of over K4,500 in the black market, pushing pure gold up to a record high of K3.7 million per tical.
Consequently, the CBM sold dollars at its auction market for the sectors in need, to control the soaring dollar.
A total of $443.8 million were sold at an auction rate in 2021 as well.
At the end of September 2021, the dollar value hit a high of over K3,000, resulting in a record high of the pure gold price at K2.22 million per tical.
Under the guidance of the Central Committee on Ensuring Smooth Flow of Trade and Goods, the Monitoring and Steering Committee on Gold and Currency Market was formed on 17 December 2021 as gold and currency market stability play a crucial role in the trade facilitation.
The objectives of the committee are inspecting and prosecuting market manipulation, checking if there is compliance with payment rules in the domestic market, and proceeding against those unscrupulous traders who intend to interfere with the free and fair operation of the market under the existing laws, by-laws and regulations in line with the official directives, illegal foreign currency holding, illegal trade and taking legal actions against price manipulators. — NN/GNLM