Downward Spiral of Myanmar Kyats against Thai Bath and US dollar 100 Kyats Could Soon Equate to 1 Thai Baht
In Myawaddy Township on the Thai-Myanmar border, residents are expressing are worried about the continuous downward spiral of the value of the Myanmar kyat. They claim that one hundred Myanmar kyats is now only nearly equivalent to one Thai baht.
According to a resident of Myawaddy, just after the military coup, the exchange rate of 100,000 Myanmar kyats was approximately 1,500 Thai baht. However, more than 2 years since the coup, the value of the currency has dropped, and now 100,000 kyats can be exchanged for around 1,115 Thai baht.
He informed KIC, “Currently, the exchange rate stands at only 1,115 Thai baht for 100,000 Myanmar kyat, which is nearing the ratio of one baht for every 100 kyat. The imposition of sanctions by the United States on two military banks, has affected foreign currency transactions, and led to a continuous decline in the value of the Myanmar kyat. This has also sparked a rise in the prices of Thai goods.”
As the value of the Myanmar kyat continues to decline, Myawaddy Township, which deals in both Myanmar kyat and Thai baht, is witnessing an increase in the cost of trading, purchasing, and living. Residents have also reported that traders are facing difficulties in acquiring US dollars for importing goods.
A trader who imports Thai goods from Mae Sot to Myawaddy shared that , “When merchants purchase and import Thai goods from Mae Sot and Bangkok, they are required to make payments in dollars. However obtaining dollars using baht has a headache. In Yangon, one dollar now costs 3,200 kyats, and buying dollars has become almost impossible, due to over 50 arrests made by the military targeting dollar exchange operations. This has caused a dollar scarcity in the market. As a result, those who possess dollars are reluctant to sell or buy, leading to a slight increase in the value of the baht.”
According to individuals working in the currency exchange business in Mae Sot and Myawaddy, the current exchange rate is 32 Thai baht to a dollar. They also predict that the Myanmar kyat is likely to continue its decline in value in the future.
The Myawaddy trade zone has experienced an increase in exporting food products to Thailand in recent times. As reported in the Myanmar Alin newspaper issued by the Military Council on July 17, the trade volume between the two countries from April 1 to July 14 reached 530.643 million US dollars.
