The Myanmar Kyat Plunges, Pushing Up Prices of Essentials and Crippling Households - What You Need to Know
In recent days, the Myanmar currency has seen a rapid depreciation, causing prices of essentials like food and medicine to soar. This has had a crippling effect on ordinary households in the country, already struggling with civil war and a crumbling economy.
The Kyat's volatility has been extreme, dropping to 7,500 to the dollar in the black market from 5,000 earlier in the month. Reports indicate that the Myanmar junta has been printing more Kyat to support the currency, leading to the sharp decline.
As a result, prices of essential goods have not come down, despite the Kyat's recovery to around 6,000 to the dollar in the black market. Rising transportation costs and disruptions in border trade have further exacerbated the situation, causing costs of medicines and groceries to skyrocket in Myanmar's main cities.
The economic turmoil in Myanmar is a result of the military's overthrow of the elected government in 2021, triggering investor exodus, Western sanctions, and widespread protests. The junta's attempts to stabilize the currency and the economy have been heavy-handed, including arrests of individuals involved in foreign exchange and gold trading.
Inflation has been on the rise, impacting the cost of imported products and essential items like cooking oil. Additionally, a shortage of imported fuel has led to increased transportation costs, further driving up retail prices in the country.
The National Unity Government has criticized the military's handling of the economic crisis, stating that there is no proper plan in place. The situation has led to a severe economic crisis, with inflation spiraling out of control.
Overall, the economic turmoil in Myanmar has had a significant impact on households, leading to higher prices of essentials and limited availability of certain medicines. It is important for individuals to be aware of these developments and take necessary precautions to protect their finances.