Money changers selling at more than K90 per baht in Kawthaung

By DMG 05 Sep 2022

DMG Newsroom
5 September 2022, Kawthaung, Tanintharyi Region

The market exchange rate of Thai baht to Myanmar kyat in Kawthaung, Tanintharyi Region, on Monday nearly doubled the official rate set by the Central Bank of Myanmar (CBM), as the kyat continues to perform poorly against other regional currencies and the US dollar.

The exchange rate set by the CBM was K57 per baht on September 5, but 1 baht was reportedly selling at K93 on the open market in Kawthaung, a border town important for trade between Myanmar and Thailand.

“Now the value of the Myanmar currency is very low. If the Myanmar kyat and Thai baht are exchanged only at the rate set by the CBM, businessmen may lose,” explained a money changer in Kawthaung. “Traders not only in Kawthaung, but also in Myawaddy and Dawei, are mainly using baht, so they are doing foreign currency transactions.”

The baht-to-kyat exchange rate at one point on Monday reportedly reached around K100 per baht, making it difficult to pay for goods, according to border traders in Kawthaung.

“The value of the Myanmar kyat is very low. The exchange rate between the Thai baht and the Myanmar kyat has fluctuated three times in one day. The merchants will face losses if they buy at the exchange rate set by the CBM,” said one trader.

Kawthaung residents said that some money exchange shops in Kawthaung town were closed due to army and police personnel chasing and arresting money changers in the last week of August.

“The military and police detained some money changers last week,” said a resident of Kawthaung. “Almost all money exchange counters in Kawthaung suspended operations as the military attempted to arrest money changers. Some money exchange counters resumed operations in September.”