Myanmar merchants face difficulties with China border trade due to local currency depreciation

With Myanmar currency depreciation, merchants on the Myanmar-China border are facing difficulties with their trade activities, local merchants said.  

The exchange of a Chinese Yuan for Myanmar Kyat has now reached Ks580 up from Ks270 and 350.  

“We have difficulties with our trade activities due to the decreasing local currency value against foreign currencies. There have already been cargo trucks here. They must go to the other side after cargoes have been loaded. Merchants will face difficulties if the Chinese currency value changes. On the Chinese side also, there are Chinese cargo trucks waiting in line to come here. Our local merchants will make losses if they have to pay in Yuan whose value has got exorbitantly high,” a local merchant, U Aung, said.  

Currently, border trade at the 105th mile camp is almost stagnant due to the Myanmar kyat depreciation and the increasing Chinese Yuan value, according to local trade sources.  

“What border trade is stagnant there means high expenses and policy change as well as declining local currency value. Our local banks have fixed the price as just over Ks390 per Yuan,” another merchant Ko Than said.

Local merchants said transport of a truck loaded with cargoes from the Chinese border to Mandalay unnecessarily cost Ks2 to 2.5 million more than a real expense.

On the Chinese side, authorities conducted checks after reports of corruption such as collection of high taxes.

As a result, the expense for entry to China for a truck is now about 1,800 Yuan down from 2,100 in the past.

On September 2, Myanmar sent 39 cargo trucks to China for export and received 53 Chinese cargo trucks for import.

Source: Eleven Myanmar

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