The prices of pharmaceuticals and fuel have jumped as Myanmar’s kyat has slumped against the dollar since US sanctions hit two junta-controlled banks, Myanma Foreign Trade Bank and Myanma Investment and Commercial Bank, last month.
The two banks primarily functioned as foreign currency exchanges for Myanmar and there are now around 3,200 kyats per dollar. The rate had stabilized at around 2,800 kyats since August last year.
A pharmaceutical wholesaler in Yangon said: “The price of pharmaceuticals has risen. All types of medicines have increased in price by at least 500 to 1,000 kyats. Pharmacists do not know if they should sell their existing stocks at higher or current prices. They will have to buy at higher prices to restock.”
The cost of medicines to treat chronic diseases, like diabetes and liver and kidney problems, has almost doubled, according to Yangon residents. The prices of vitamin supplements and paracetamol have increased too.
Ma Nwe Ni from North Dagon Township in Yangon said: “Pharmaceutical prices have never declined. They keep increasing. Medicines for a common cold now cost 5,000 to 6,000 kyats [around US$3 at junta rates].”
Myanmar imports around 85 percent of its medicines, while domestic production remains inadequate.
Fuel prices have also surged this month, reaching around 2,100 kyats per liter.
The junta has detained dollar and gold dealers for alleged manipulation of the market, creating dollar shortages, said a fuel importer in Mandalay.
“Fuel prices increase as the kyat slumps. The regime does not sell US dollars to us and we can’t buy them at the market, so we can’t easily pay for fuel,” the dealer told The Irrawaddy.
After the latest US banking sanctions were imposed on June 21, gold prices hit 3.2 million kyats per tical (16 grams) in the domestic market and the price is now stable at around 3 million kyats.
