The volatility of the kyat and its impact on the banking sector has been in the headlines as Myanmar continues its cautious journey towards democratic reform.
Over 10 days from the start of February, the kyat strengthened from about K1,300 to the US dollar, to about K1,205, an appreciation against the American currency of around 7 percent.
The volatility of the kyat during the period seriously disrupted the operations of private banks and authorised foreign exchange counters, forcing them to temporarily suspend buying US dollars.
This week I would like to explore the reasons for the volatility of the kyat, the likely consequences and the role of Central Bank of Myanmar. (Courtesy of Frontier Myanmar)
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