Irrawaddy-Aug 29
As the currency crisis deepens in Myanmar, junta boss Min Aung Hlaing is calling on people to use less cooking oil, saying Myanmar has to spend more than US$ 600 million every year to import it. This is what he told a meeting of his economic committee on August 25. He also said Washington’s sanctions on two Myanmar banks—not the coup he led—are forcing Myanmar into an economic crisis. Min Aung Hlaing also accused those who hold US dollars and gold of manipulating prices, and stressed the need to correct this, raising concerns that his regime might escalate its crackdown on currency-exchange services and gold dealers. At the same meeting, the general also blamed the surging price of US dollars, gold, cars, food— and the cost of living in general—on what he called “self-seeking business people.” The regime is running out of cash as tax revenues have steeply declined due to the mass boycott of Myanmar, exports have fallen, foreign investors have raced out of the country, and western countries have imposed sanctions. Meanwhile, Myanmar cannot produce many goods it needs that were previously imported from foreign markets—like cooking oil. The biggest blow to the junta so far came in June, when the US sanctioned two Myanmar state-owned bank: Myanma Foreign Trade Bank (MFTB) and Myanma Investment and Commercial Bank (MICB). Both functioned primarily as foreign-currency exchanges, enabling the conversion of kyats to US dollars and euros, and vice versa. Worse, Singapore’s United Overseas Bank later restricted all transactions with Myanmar. Dr Min Min Thaw, a professor of economics at California State University, said the regime itself is the root cause of the country’s economic problems, including inflation and the depreciation of the kyat. These problems will persist as long as Myanmar’s generals are in power, she said, warning that hyperinflation awaits. Read more at:
