Myanmar’s kyat plummets to historic low

Since September, Myanmar’s national currency, the kyat, has lost 60% of its dollar value compared to its value in February, the beginning of the junta’s coup. Specifically, its black market value is now 3,000 kyat to the U.S. dollar. Many blame the Central Bank of Myanmar for this all time low, as they removed their rule that kept the kyat-dollar exchange rate to .8 percent. Though the CBM attempted to inject $120 million US dollars to the market through many dollar sales, as well as a restriction of the import of vehicles, the exchange rate still devalued. Many have attributed this to the elite’s buying of gold and US dollars, as they feared political instability. Thus, petroleum prices have risen, raising transportation costs. Furthermore, imported goods and domestic commodity prices have all risen. Some imports of goods were also stopped because of the kyat’s devaluation. Furthermore, the lack of foreign investment and international aid, like the US sanctions, also contributed to this. Many foreign exchange shops closed their doors at the end of September due to this historic exchange rate.

 On September 30, Zaw Min Tun, the Tatmadaw’s spokesman admitted that the military takes full responsibility for the economic crisis and were trying their best to alleviate the situation. A housewife commented to Radio Free Asia that the cost of coffee rose by 50%, while the price of rice, milk, and cooking oil increased by 200%.  

In 2007, Myanmar monks led the “Saffron Revolution” after cooking gas prices rose, because the government at that time removed subsidies on sales prices of fuel. Today, however, this economic crisis is triggered by the Tatmadaw’s February coup and “state of emergency” declaration, which has so far resulted in at least 1,108 verified civilian deaths and 6,591 arrests (mostly from protests), according to the Assistance Association for Political Prisoners (AAPP). 

The economic effects of the Tatmadaw’s coup requires analysis. Will this cause the Tatmadaw to release Suu Kyi? Will the Tatmadaw step down? Will they yield to international pressure? Will even more civilians protest? How many more civilians have to die? Myanmar’s instability becomes more apparent day by day.