Plunging currency, dollar drought worsen Myanmar economic crisis

Run on banks: People lining up outside a bank in Yangon to withdraw cash in May. The Central Bank’s efforts to quell the rush for dollars have failed to stem the kyat’s slide, which began after the military coup in February. — Reuters

MYANMAR is battling a plunging local currency amid an unprecedented United States dollar shortage, driving up the cost of imports and worsening the economy’s struggle with dual challenges of the pandemic and post-coup financial isolation.

The kyat has tumbled about 50% since the military seized power in February which triggered a freeze on parts of Myanmar’s foreign reserves held in the United States and suspension of multilateral aids – both key sources of foreign currency supplies.