Rising dollar may push up price of imports and other commodities: businesspeople

By DMG 10 Sep 2021

DMG Newsroom
10 September 2021, Sittwe 

Businesspeople say the recent rise in the value of the US dollar could push up the prices of imports and other commodities. 

The US dollar and gold prices rose to record highs in Myanmar this past week, reaching about K1,800 per dollar on September 10. 

Businesspeople say the rising value of the US dollar has led to a sharp increase in the price of imported goods. 

The price of fuel is also rising as Myanmar mainly imports fuel from abroad. Businesspeople say rising commodity prices could push up other food items as transportation costs rise. 

“Myanmar mainly imports fuel from abroad. As fuel prices rise, fuel will remain a mainstay of transportation, leaving other costs higher and the rest more expensive. So prices are likely to go up,” said U Tin Aung Oo, president of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI). 

Petroleum companies are also struggling with increasing fuel prices as the US dollar rises. “The money sold today does not add up to profit or capital for tomorrow,” said U Than Hlaing, acting chairman of the Arakan State Petroleum Association. 

U Khin Maung Gyi, a businessman, said prices in Arakan State were rising because traders were buying goods from mainland Myanmar. 

“Wholesalers of imported goods have pushed up the value of the dollar, which has pushed up the value of their imports. If it goes up like this, Arakanese businessmen have to buy from them, so as foreign currency goes up, their prices go up. So the prices of Arakanese traders who buy from them go up,” he explained. 

The domestic gold price in Myanmar surged on September 7 — the day the National Unity Government (NUG) declared a “people’s defensive war” against the country’s military regime — hitting a record high of nearly K1.8 million per tical of 24K gold. 

According to industry stakeholders, gold prices in Arakan State are sluggish due to the record high gold prices of late, while the number of people seeking to pawn their gold jewelry is increasing.