MMK Weakness Weighs on Economic Of Myanmar

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The value of currency stability in a country  indicates a better political and economical situation of that country.When we learn the difference of currency stability between Thailand and Myanmar,Thailand is more stable economy than Myanmar for a long time. Actually Thailand has been  under the military regime since 2014 but she has already built a systematic foundation for a sustainable economic development.

MMK weakness more and more

According to currency exchange history, Last year September 21,the exchange rate of 1USD against Thai currency,THB,was 33.12 THB in the EX currency exchange market.Today 1 USD is equal to 32.36 THB.In 2016,1USD was equal to over 35 THB and we can say that Thailand economy in 2016 was not as good as in 2017.And we can assume that the economic of Thailand in 2018 is grower than those of in 2017.The inflation rate of Thailand between 2017 october and 2018 July was 0.68% to 1.46%.The difference of the inflation pc is 0.78 and it can stand at lower than 1pc.As a result,Thailand’s economic is not bad  and her currency value and the change of inflation is stable.

How about World bank forcast  for inflation of Myanmar?

Let’s see the inflation of Myanmar currency in the currency exchange market XE..In September 2017, the exchange rate of 1USD against MMK was 1359.9 Kyats.Today the exchange rate is 1613.5 MMK,the lowest record in history.But two years before,In 2016 September,1USD was equal to 1233 MMK.So, the inflation rate of Myanmar between 2016 and 2018 is 4% to 7.66%.And then,the difference of the inflation rate pc from year 2016 October to 2018 July is 3.66.So we can say that the value of Myanmar currency is decreasing more and more yearly in comparison with those of Thailand.On September 19,the value of MMK fell down lowermost 1620 MMK and the gold price also hitted a record high over 1 million per tical that is equal to16.6 gram.According to The Asia Development Bank,inflation in Myanmar is forcasted at around 6 pc in 2018,which is among the highest in ASEAN.

Trade deficit and MMK weakness

What’re the causes of MMK weakness?Among some causes, the main one is trade deficit that follows more USD currency demands.According to statistics from the Ministry of Commerce (MOC), total imports during this fiscal year up to the first week of July hitted $5.3 billion.During the same period,some $4 billion worth of goods were exported.As a result, the trade deficit current fiscal period up to the first week of July was more than 1 billion amid hitting a trade surplus 2.35 billion of Thailand within the first eight month of 2018.It means we need more than 1 billion USD in our BOT,balance of trade, in that period.

How can we do to be strong our currency MMK?For decades,the country couldn’t built infrastructural developments including a better education system and technologies to be able to manufacture value added products to export and effective services.

Can NLD government solve it urgently?

 After NLD government has got it’s hold on the country,most of the people expected to be a better situation for all round developments.Later,Bengali terrorists,named ARSA,from northern Rakhine state, started to broke our people’s peace and stability and the crisis impacted the country’s economic growth,FDI and images.

Nowaday,our people urgently want to be a stable economic rather than peace process.How can we cooperate with the government?How can the government do the best for trade deficit?Anyway,MMK weakness has weighed on the country’s economic development,and also on the NLD government.Eventually,if the government can’t solve the economic problems currently occurring in the country to a certain extent,the problem may be one of the decision factors for coming by-election and 2020 election.

Ref:EX exchange converter/goldprice.org

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