Myanmar (Burma) Kyats price fall down and Crypto Usage

Photo Source

Myanmar (Burma) is a country in Southeast Asia. Myanmar is called the golden country. Some say it is ruby​land. About 70% of the rubies sold in the world come from Myanmar. Although the country's resources are abundant, the country is falling into poverty because of poor management. Forty percent of the country's population earns less than the minimum income. (That means forty percent of the country's population is facing famine)

Burma's kyat has fallen in value due to political sanctions. Why political sanctions occur? Mainly because of the military coup and human rights violations. Now the executions, which have been held for many years, are being resumed. (Four people, including politicians, were executed and killed)

Another bad factor is the misguided economic policies of the central bank. The dollar exchange rate was kept constant. As demand for Dollars in the country increased, the black market was about 35% higher than the Central Bank's benchmark price. Due to these reasons, the prices of domestic basic food items have increased very much.

Another thing is that the central bank has banned interest/principal payments on foreign debt. Therefore, the confidence of the country has decreased. In addition to this, the country-based companies (Telenor, Total) are leaving Myanmar. (Due to the additional pressure of the military's human rights violations)

That's why most local people use stable coins like USDT as reserve currency. In fact, trading of Crypto is not allowed in Myanmar. If there is an investigation, domestic financial institutions can be prosecuted according to law. If convicted, he could face a minimum of two to five years in prison.

In malls, some items are starting to fail. It is not yet known how the rising prices will be controlled. Now, the value of the local currency (kyat) has started to decline a lot. Going forward, it is still necessary to continue to monitor the value of Myanmar's currency and domestic Crypto usage.

@johndieo
11.8.2022