CBM Buys U.S. Dollars to Prop Up Value

0
225

Myo Sandar/Myanmar Business Today

The Central Bank of Myanmar bought $10.5 million of U.S. dollars between December 2 and 5 in an attempt to prevent the greenback from falling further.

The Central Bank bought $3 million per day from private banks from December 2-4 and $1.5 million on December 5.

Dollar prices in the domestic market dropped to K1,503 per dollar on December 5 from K1,515 per dollar the previous week.

The Central Bank started buying the greenback in late October, when price was K1,527 per dollar, and purchased around $40 million in November, according to CBM data.

Meanwhile, domestic gold prices have dropped along with the dollar, hitting K1.185 million per Kyattha of 24K gold (1 Kyattha = 16.32kg).

On November 15, the Central Bank issued instructions for cross-border fund transfers in a bid to curb illegal money transfers and promote formal fund transfers. According to the instructions, cross-border fund transfers are capped at $1,000 per day and $5,000 per month per person.