• Burmese
Saturday, July 12, 2025
No Result
View All Result
NEWSLETTER
The Irrawaddy
26 °c
Yangon
  • Home
  • News
    • Burma
    • Politics
    • World
    • Asia
    • Myanmar’s Crisis & the World
    • Ethnic Issues
    • War Against the Junta
    • Junta Cronies
    • Conflicts In Numbers
    • Junta Watch
    • Fact Check
    • Investigation
    • Myanmar-China Watch
    • Obituaries
  • Politics
  • Business
  • Opinion
    • Commentary
    • Guest Column
    • Analysis
    • Editorial
    • Stories That Shaped Us
    • Letters
  • Junta Watch
  • Ethnic Issues
  • War Against the Junta
  • In Person
    • Interview
    • Profile
  • Books
  • Donation
  • Home
  • News
    • Burma
    • Politics
    • World
    • Asia
    • Myanmar’s Crisis & the World
    • Ethnic Issues
    • War Against the Junta
    • Junta Cronies
    • Conflicts In Numbers
    • Junta Watch
    • Fact Check
    • Investigation
    • Myanmar-China Watch
    • Obituaries
  • Politics
  • Business
  • Opinion
    • Commentary
    • Guest Column
    • Analysis
    • Editorial
    • Stories That Shaped Us
    • Letters
  • Junta Watch
  • Ethnic Issues
  • War Against the Junta
  • In Person
    • Interview
    • Profile
  • Books
  • Donation
No Result
View All Result
The Irrawaddy
No Result
View All Result
Home News Burma

Myanmar’s Currency Hits Record Low as Coup Wreaks Havoc on Economy

The Irrawaddy by The Irrawaddy
September 29, 2021
in Burma
Reading Time: 3 mins read
0 0
A A
The US dollar exchange rate with the Myanmar currency rose to a record high on Sept. 28, 2021. / The Irrawaddy

The US dollar exchange rate with the Myanmar currency rose to a record high on Sept. 28, 2021. / The Irrawaddy

9.6k
VIEWS
Share on FacebookShare on Twitter

Almost eight months after the military coup, Myanmar’s currency depreciated to a record low this week, prompting fears of worsening social and economic instability in the country, which has been devastated by the takeover.

On Tuesday, the US dollar exchange rate rose to a record high of around 2,500 to
2,700 kyats per dollar. Prior to the Feb. 1 coup, the exchange rate was between 1,300-
1,400 kyats per USD. The rates on Wednesday are the same as yesterday, according to sources from different money exchanges and the black market.

The value of gold on the domestic market reached a record high of more than 2.25
million kyats per tical on Tuesday, up sharply from a little over 2 million kyats the
previous day. Gold shops had to close on that day and the market reopened only on Wednesday afternoon with prices at 2.2 million kyat per tical. The tical is a traditional Burmese measurement of gold weight equal to16.33 grams (just over half an ounce). The gold price before the coup was 1.32 million kyats per tical.

RelatedPosts

Anti-Coup Icon Explains Urgent Call for NUG Reform

Anti-Coup Icon Explains Urgent Call for NUG Reform

July 11, 2025
71
KIA Denies Rumor Chief Under House Arrest in China

KIA Denies Rumor Chief Under House Arrest in China

July 11, 2025
289
Junta Bombing of Resistance-Held Areas in Mandalay, Karenni Kills Seven Civilians

Junta Bombing of Resistance-Held Areas in Mandalay, Karenni Kills Seven Civilians

July 10, 2025
519

People are only looking to buy US dollars in the currency market, with almost no one willing to resell, pushing the value of the greenback up sharply against the local currency, according to market sources.

“Dollar sales are almost nonexistent and demand [for US currency] is rising as more people want to buy than previously,” said a businessman who spoke on condition of anonymity.

Under the junta, the Central Bank of Myanmar has been selling reserve dollars to some companies importing key commodities such as petrol, cooking oil and pharmaceuticals through local private banks on a quota basis. However, the businessman said, there is a large demand for dollars in the market.

Since the coup, the central bank has sold more than 190 million US dollars to the market in an attempt to stabilize the exchange rate. Of that amount, some $60 million was sold in September alone.

However, unwilling to accept the drop in the Myanmar currency’s value, the junta set the official exchange rate at around 1,755 kyats per USD on Wednesday.

Economists told The Irrawaddy that the economic slowdown, the banking crisis and political instability in the aftermath of the coup have led to volatility in the US dollar/kyat exchange rate, adding that the banking crisis had escalated into a currency crisis.

A business analyst in Rangoon said, “It is mainly based on political instability. As the political situation becomes more volatile, some rich people will buy gold and dollars. The Central Bank also tries to monitor [the situation]. But as the bank does not have a lot of dollars, it can’t control things.”

He said the current economic problems in the Southeast Asian country could not be resolved through economic policies alone, but only through political change.

The rise of the US dollar/kyat exchange rate has seen petroleum prices increase steadily to more than 1,400 kyats per liter. At the end of January, fuel prices ranged between 660-770 kyat per liter.

As a consequence, transportation costs have risen, as well as domestic commodity prices and the prices of some imported goods. On Wednesday, some companies abruptly halted their sales of imports due to the serious drop in the kyat’s value.

An economist said: “People have lost faith in the kyat and are reluctant to deposit in banks. So they purchase the commodity they trust. People are trying to save dollars rather than spending.”

He said that due to a decline in exports, the cessation of foreign investment and the absence of international aid, the junta’s income from foreign currency had dried up, limiting its ability to control the US dollar/kyat exchange rate.

“They can’t solve this crisis. It is clear that they cannot do it. The whole economy is collapsing because of them,” he said.


You may also like these stories:

Myanmar Regime Arrests Wife of Doctor Reportedly Killed by Troops

Myanmar Junta Troops Ambushed in Shan State

Int’l Rights Experts Urge UN to Declare Myanmar Junta ‘Terrorist’ Organization

Your Thoughts …
Tags: Central Bank of MyanmarCoupCurrencydepreciateEconomyExchange RatefallGoldjuntakyatlowMilitaryMyanmarpricesrecordUS dollarvalue
The Irrawaddy

The Irrawaddy

...

Similar Picks:

Enter the Dragon, Exit the Junta: Myanmar’s Brotherhood Alliance makes Chinese New Year Vow
Burma

Enter the Dragon, Exit the Junta: Myanmar’s Brotherhood Alliance makes Chinese New Year Vow

by The Irrawaddy
February 12, 2024
44.8k

Ethnic armed grouping says it will continue Operation 1027 offensive until goal of ousting the junta is achieved. 

Read moreDetails
Drone Attack at Myanmar-China Border Gate Causes Over $14m in Losses
Business

Drone Attack at Myanmar-China Border Gate Causes Over $14m in Losses

by The Irrawaddy
November 27, 2023
38.6k

Jin San Jiao is latest northern Shan State trade hub in crosshairs of ethnic Brotherhood Alliance.

Read moreDetails
Arakan Army Captures Myanmar Junta Brigade General in Chin State Rout: Report
Burma

Arakan Army Captures Myanmar Junta Brigade General in Chin State Rout: Report

by The Irrawaddy
January 15, 2024
36.6k

Rakhine-based armed group has reportedly detained the chief of 19th Military Operations Command after seizing his base in Paletwa Township.

Read moreDetails
General Close to Myanmar Junta Boss Placed Under House Arrest, Interrogated for Corruption
Burma

General Close to Myanmar Junta Boss Placed Under House Arrest, Interrogated for Corruption

by The Irrawaddy
September 14, 2023
28.7k

The arrest of ‘kickback king’ Lt-Gen Moe Myint Tun, once seen as a possible successor to Min Aung Hlaing, comes...

Read moreDetails
Myanmar Junta Arrests Thai Condo Buyers, Realtors as Currency Crashes
Business

Myanmar Junta Arrests Thai Condo Buyers, Realtors as Currency Crashes

by The Irrawaddy
June 4, 2024
27.7k

Monday’s arrests follow reports that Myanmar has become one of Thailand’s most lucrative markets for selling condos since the 2021...

Read moreDetails
China-Backed Illegal Rare Earth Mining Surging in Northern Myanmar
Burma

China-Backed Illegal Rare Earth Mining Surging in Northern Myanmar

by Yan Naing
July 15, 2022
34.8k

A Myanmar military-backed militia in Kachin State is protecting Chinese-run mines that produce coveted rare earth minerals used in hi-tech...

Read moreDetails
Load More
Next Post
A campaign poster of Gwa Township NLD candidates for the 2020 general election.

Myanmar Junta Jails NLD Lawmaker and Civilians For Anti-Regime Protests

U Aung Hlaing Oo

Myanmar Junta Crony Plays Key Role in Arms Purchases From Ukraine

No Result
View All Result

Recommended

‘Reforms Are Not Optional’: Prominent Activist Urges NUG to Act Before It’s Too Late

‘Reforms Are Not Optional’: Prominent Activist Urges NUG to Act Before It’s Too Late

2 days ago
991
Trump’s Tariffs to Hit Myanmar’s Garment Manufacturers Hard

Trump’s Tariffs to Hit Myanmar’s Garment Manufacturers Hard

2 days ago
989

Most Read

  • Chinese Investment Reshapes Myanmar’s N. Shan as MNDAA Consolidates Power

    Chinese Investment Reshapes Myanmar’s N. Shan as MNDAA Consolidates Power

    shares
    Share 0 Tweet 0
  • Myanmar Junta Deploying Conscripts in Major Push to Reclaim Lost Territory

    shares
    Share 0 Tweet 0
  • Myanmar Junta Chief Thanks Trump for Shutting Down VOA and RFA

    shares
    Share 0 Tweet 0
  • Two Prominent Myanmar Ex-Political Prisoners Die Hours Apart in Yangon

    shares
    Share 0 Tweet 0
  • Junta Bombing of Resistance-Held Areas in Mandalay, Karenni Kills Seven Civilians

    shares
    Share 0 Tweet 0

Newsletter

Get The Irrawaddy’s latest news, analyses and opinion pieces on Myanmar in your inbox.

Subscribe here for daily updates.

Contents

  • News
  • Politics
  • War Against the Junta
  • Myanmar’s Crisis & the World
  • Conflicts In Numbers
  • Junta Crony
  • Ethnic Issues
  • Asia
  • World
  • Business
  • Economy
  • Election 2020
  • Elections in History
  • Cartoons
  • Features
  • Opinion
  • Editorial
  • Commentary
  • Guest Column
  • Analysis
  • Letters
  • In Person
  • Interview
  • Profile
  • Dateline
  • Specials
  • Myanmar Diary
  • Women & Gender
  • Places in History
  • On This Day
  • From the Archive
  • Myanmar & COVID-19
  • Intelligence
  • Myanmar-China Watch
  • Lifestyle
  • Travel
  • Food
  • Fashion & Design
  • Videos
  • Photos
  • Photo Essay
  • Donation

About The Irrawaddy

Founded in 1993 by a group of Myanmar journalists living in exile in Thailand, The Irrawaddy is a leading source of reliable news, information, and analysis on Burma/Myanmar and the Southeast Asian region. From its inception, The Irrawaddy has been an independent news media group, unaffiliated with any political party, organization or government. We believe that media must be free and independent and we strive to preserve press freedom.

  • Copyright
  • Code of Ethics
  • Privacy Policy
  • Team
  • About Us
  • Careers
  • Contact
  • Burmese

© 2023 Irrawaddy Publishing Group. All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • News
    • Burma
    • Politics
    • World
    • Asia
    • Myanmar’s Crisis & the World
    • Ethnic Issues
    • War Against the Junta
    • Junta Cronies
    • Conflicts In Numbers
    • Junta Watch
    • Fact Check
    • Investigation
    • Myanmar-China Watch
    • Obituaries
  • Politics
  • Opinion
    • Commentary
    • Guest Column
    • Analysis
    • Editorial
    • Stories That Shaped Us
    • Letters
  • Ethnic Issues
  • War Against the Junta
  • In Person
    • Interview
    • Profile
  • Business
    • Economy
    • Business Roundup
  • Books
  • Donation

© 2023 Irrawaddy Publishing Group. All Rights Reserved

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.