The Economy of Myanmar
The Kyat, Inflation and Capital Controls
The kyat lost much of its value, and the junta imposed foreign exchange controls that pushed activity into informal markets.
Money under pressure.
Depreciation
The kyat fell steeply against the dollar after the coup.
Controls
Rules forced exporters to convert dollars at official rates.
Parallel market
A black market emerged, with far higher dollar prices.
Inflation
Import costs pushed food and fuel prices up.
Two rates
The official dollar rate and the street rate diverged sharply.
Assuming controls stabilise the currency
They often push activity underground.
Key takeaways
- The kyat depreciated.
- Exchange controls were imposed.
- A parallel market grew.
- Inflation rose.
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