Gold, kyat drop together in Myanmar
Meanwhile, big-hand gold buyers in the country are taking advantage of the situation as they can afford more kyat to purchase gold and store it as a safe haven asset considering Burmese banking system is yet to fully develop and people continued to distrust of Burmese banks.
Myanmar's currency,the Kyat dropped below the 1000 a dollar mark after global gold prices fell below $1200 an ounce.
According to Myanmar Gold Entrepreneurs Association, currency speculations also contributing to the slump of the kyat.
Meanwhile, big-hand gold buyers in the country are taking advantage of the situation as they can afford more kyat to purchase gold and store it as a safe haven asset considering Burmese banking system is yet to fully develop and people continued to distrust of Burmese banks.
Most gold traders,however remained confused over the scenario and chose to stay away from the market for the time being. In the past, Myanmar gold traders brisk sell the yellow metal for country's currency which gained in value.
At that time, the Kyat gained against the dollar while gold prices dropped following global trends and forced gold traders to sell all the gold they previously kept in stock
Gold traders rush for US dollars further hit Kyat as it continued to down slide and has dropped almost 18 percent in value since the government floated the runt in early April last year.
Analysts said there are many reasons for the rise of the dollar’s value. They added that though dollar-dependent exporters and labours have been the hardest hit, there are fears that a ripple-effect could see farmers suffer as demand for increasingly expensive agricultural exports falls.
The phenomenon has also reportedly sparked a hike in basic foodstuffs and transportation charges in the newly opened up country.
Sumber : Google
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