Myanmar is going through an unprecedented currency crisis. Dollar shortage in former Burma is prompting the cost of imports touch skies.
It is worsening Myanmar economy’s struggle with the twin challenges of pandemic and post-coup financial isolation.
Reports say kyat ( the basic monetary unit of Burma) has tumbled about 50 per cent since the military coup.
Myanmar in February saw a coup in which the military seizing power, snatched all the rights of its civilians.
Violence and protests have resulted in a freeze on parts of Myanmar‘s foreign reserves held in the U.S. and suspension of multilateral aids.
Myanmar and its currency woes
Now, the restrictions on cash withdrawals are fuelling worries about the safety of money in banks.
The latest currency sell-off has begun to hit Myanmar badly that is still grappling with street protests.
Moreover, the ouster of the civilian government led by Aung San Suu Kyi has made the political situation grim.
Moreover, the plunging currency has begun taking its toll on the country’s economy.
Businesses are shutting down after rising costs of imports and raw materials.
India, being its neighbour, stressed that it remains in full support of restoring the democratic process in Myanmar.
Earlier, the ASEAN leaders had urged the head of Myanmar’s military chief Senior General Min Aung to end the violence in Myanmar.
Since February 1, 2021, Myanmar has been living under a coup. Besides, Myanmar’s currency woes, a tumbling economy and human rights violations are fueling the crisis.
Furthermore, FDI into Myanmar has also dwindled with multinational companies becoming more reluctant of doing business with the Tatmadaw.
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