News of new banknote prompts temporary closure of currency exchanges on Myanmar-Thai border

By Admin 24 Jul 2023

DMG Newsroom
24 July 2023, Sittwe

Money changers along the Thai-Myanmar border have suspended operations after the junta-controlled Central Bank of Myanmar (CBM) announced over the weekend that it would begin issuing new banknotes worth twice as much as the highest current denomination on July 31.

The CBM announcement that it would start issuing banknotes denominated at 20,000 kyats came Sunday morning.

“It was OK to exchange between kyat and baht until 2 p.m. yesterday. However, money changers suspended operations after the exchange rate reached 100,000 kyats for 1,000 baht, around 4 p.m. Money changers are still closed today,” said a money changer in Mae Sot, Thailand.

The exchange rate was 100,000 kyats for over 1,200 baht on Sunday. But the Myanmar currency slumped heavily within hours after the CBM released word of the new banknote, forcing money changers at the border into a wait-and-see mode.

“It was the repercussions of the 20,000-kyat banknote [announcement]. Money changers will remain closed until the situation becomes stable. We will have to wait three or four days before we resume our business,” said another money changer in Myawaddy, on the Myanmar side of the border.

The border trade has slowed since Sunday, according to merchants. Meanwhile, the prices of basic foodstuffs have soared at the border, and the prices of other goods are also unstable.

“The 20,000-kyat banknote has had impacts on merchants on the Thai-Myanmar border. Border trade has slowed down,” said a border trader based in Yangon who engages in border trading with Thailand through the border town of Myawaddy in Kayin (Karen) State.

Border traders have also warned about manipulation by business owners attempting to take advantage of the current situation.

The regime’s CBM said it would only issue a limited number of 20,000-kyat banknotes, and that it would distribute the new banknotes by exchanging damaged lower domination notes with the same value.