The Federation of Chambers of Commerce and Industry (UMFCCI) has advised the government on how to stabilise the currency.
The trade body’s statement covers the inflow of foreign currencies, how to increase demand for the kyat, the export-import sector and long-term plans.
The statement said the dollar’s appreciation was due to an unbalance between demand and supply, caused by high trade deficits, rampant black monetary markets and dollar manipulators.
If necessary, the Central Bank of Myanmar should use a managed floating exchange rate instead of a free-floating rate to stabilise the kyat. And it needed to issue announcements to extensively warn manipulators off, to crackdown on illegal monetary markets, enable direct buying and selling between banks and users and immediately abolish the US$5,000, per-day withdrawal limit from foreign bank accounts twice in a week.
On the massive inflow of foreign currency, the UMFCCI urged the government to prioritise foreign investment that would bring money into the country, inspect the circulation of investment money, scrutinise the inflow of remittances via official routes, ensure the inflow of foreign currency kept in the Myanmar Foreign Trade Bank and the Myanmar Investment and Commercial Bank into the domestic market and inspect the inflow of exports earnings.
The UMFCCI urged the government to help make available more than US$4 billion promised by international organisations, including the World Bank, Asian Development Bank and Japan International Cooperation Agency.
The UMFCCI said the government needed to insist that the service and industrial sectors, including hotels, food manufacturers, airlines and consultation services, pay salaries and for services in the kyat.
The kyat has declined 17 per cent against the dollar since October. On April 1, the dollar was valued at Ks1,190 and increased to Ks1,373 this week. Recently, the kyat hit a new low of Ks1,438.
Source: Eleven Myanmar
