May 8, 2015

The rise of the US dollar now over Ks 1,100

The US dollar continues it rise as it now costs about Ks 1,100 to buy a dollar with a selling rate of about Ks 1,105, according to the latest currency exchange information.

On 28th of April, an American dollar went for about Ks 1,090 and the following day, it was Ks 1,093. The exchange rate set by the Central Bank was Ks 1,070, a leap from the Ks 1,027 rate in March.

"The way I see it, those who have extra cash lying around exchanged kyats for dollars is one of the reasons (for the rate hike)," economist Myint Thaung said.

"Another reason is the increase in the usage of dollars in the service Industry. The other reason is that the dollar is becoming more and more reliable as a currency. These can be the reasons for the recent rise of the dollar. There can be many other reasons that we do not know about."

At the end of 2011 and the beginning of 2012, the exchange rate was Ks 824 per dollar. It hit Ks 845 in November 2012. The rate was Ks 976 in November 2013. This past October, the greenback first rose above Ks 1,000 against the Kyat.

The foreign currency market from authorized dealers as of Wednesday show the buying and selling rates as follows: US dollar - Ks 1,098/Ks 1,107, Singapore dollar - Ks 815/Ks 828 and Euro - Ks 1,199/Ks 1,235.

The Central Bank rate is Ks 1,080 per dollar.

“If the price of the dollar rises, inflation will occur, but since a trade deficit is showing, the price of our currency is also dropping," economist Soe Thein said. "Right now there are no official announcements from the government or the Central Bank regarding this issue. Outside sources only know from looking at the rough data."

Source: Eleven Weekly Media