Forex brokers in Myanmar benefit from stable kyat

The Myanmar kyat has been stable between K1300 – 1325 per US dollar for the last three months. This has helped forex brokers make profits in the local currency market.

The current price of the local currency has touched 2016 levels, and is at its strongest levels against the US dollar since 2018.

A stable currency supports economic growth and small fluctuations are preferable over a volatile currency. “There are price fluctuations depending on the local demand for the US dollar. Importers are able to manipulate dollar prices by one or two kyats. Brokers prefer keeping a rate variation of two or three kyats, and can play the market for their benefit, despite prices being stable”, a local forex broker said.

He added however, that “even though the price is stable, it is difficult to predict future fluctuations.”

The Central Bank rate is K1307 per US dollar, the currency market rate stands at K1323, and the earning rate is K1310 at present. The earnings price increases when there is higher demand for the US dollar in the local market. The market is seeing good demand for the dollar but there is lower demand from importers, as compared to previous years. The current exchange rate ideally favours imports, and exporters are facing difficulties that are further aggravated by disruptions in border trade.

Any reduction in dollar demand will push the exchange below K1300 for 1 USD. The current exchange rate is around the same levels as 2017.

Source : Myanmar Times

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