of Myanmar Kyat against US dollar causes topsy-turvy difficulties in
and unnecessary complicated process have been happening at travel-related
businesses such as travel companies, airlines and travellers after the US
dollar exchange rate rose sharply to 1,512 Kyats for a US dollar in the local
market recently according to the sources in the tourism industry.
agencies requested local travellers who will go abroad to pay the air ticket fare
in US dollar, and it caused difficulties to local travelers when the US dollar
exchange rate was unstable.
“I went to Kyaukkon
Branch of KBZ and asked them what was the exchange rate today and draw K4m from
my account. Then I asked them where I can exchange the cash with US dollar and
their answer was that there was no exchange service and they just had USD100.
And, they also said the bank had no US dollars to exchange. So, I went to CB
Bank branch at 61/2 Mile in Mayangon Township. I learnt that the bank branch
had sold only USD300 per person according to the directive from the bank
So, this issue hit some sectors including tourism industry and
causes a topsy-turvy situation. I like to see and know how and what the
government will handle this issue,” said U Ko Ko Aung, a businessman who had
difficulties on buying US dollars at some local private banks on August 17.
My Magical Myanmar
made queries about the issue by contacting KBZ Bank’s Call Center. A staff on
duty at the bank said that the bank resold US dollar to buyers upon the ratio
of the amount of US dollar at the bank and that of sellers.
To find a solution to
this issue, the Central Bank of Myanmar issued a memorandum dated August 13,
2018 to remove the trading band ± 0.8% on buying and selling of Myanmar Kyat
against one US Dollar. As the Central Bank has tried to stabilize the USD
exchange rate in the market through selling USD6.95m to the local banks, the
exchange rate of USD with Kyat went down a bit a few days later. Today (August
17) exchange rate was K1498 against one US dollar according to the Central Bank
The depreciation of
Myanmar Kyat against US dollar also caused a sort of damage to operation of
local travel agencies.
Ma The Su, official
in charge of making outbound travel schedules from AKM, said,” Truly speaking,
it is not ok to do the business as the dollar rose. We deal with travellers. No
travellers, no good operation of business. So it means the issue causes a sort
of damage to our business. Now, there is a significant decrease in the number
of travellers who deal with us.”