Irrawaddy-Aug 18

The Central Bank of Myanmar (CBM) has denied rumors that it will print additional money to fund the budget deficit of the so-called caretaker government formed by the military regime. The junta has been running a budget deficit for more than six months as a result of people boycotting payments of any kind to the regime, including paying taxes and utility bills, since the military’s February 1 coup. Last week, coup leader Senior General Min Aung Hlaing admitted that the regime has been receiving less tax revenue and urged ministries and organizations to be thrifty with their expenditures. His statement has fueled rumors that the regime might print additional money to fund the deficit, prompting concerns about further inflation. “We have no plan to print money. It is just a rumor,” the Vice-Governor of the CBM, U Win Thaw, told The Irrawaddy. The steady depreciation of the kyat since the coup, coupled with the regime’s restrictions on cash withdrawals from private banks, has prompted public distrust in the national currency. Myanmar’s currency has lost 23 percent of its value since the Feb. 1 coup, forcing the CBM to sell over US$100 million over the past six months.

Read more at: https://www.irrawaddy.com/news/burma/myanmars-central-bank-denies-printing-more-money-to-fund-budget-deficit.html