If you had problems swapping dollars for kyats yesterday, this is why: the local currency has finally surged in value after months in the doldrums.
Several banks suspended their currency exchange desks as the kyat rose to K1248 per dollar, with some quotes as low as K1190, the Myanmar Times reported.
“When a customer came into the bank and asked to sell or buy dollars we called head office to ask for the price,” said a member of staff at CB bank. “But the wait was too long and so no-one has exchanged money today.”
Downtown branches of Kanbawza Bank and AYA Bank told the paper the desks had been closed following directions from the head office.
KBZ vice president U Than Lwin cited a shortage of kyat and could not say when the services would resume.
Analysts suggested speculation about what the new government, which takes power at the end of March, could be behind the fluctuations.
“The Myanmar market is covered with rumors,” said one unnamed analyst, who told the Times people were “betting on politics” – namely that the political change would be better for business.
A lower demand for dollars over Chinese New Year was also cited, while others blamed the Central Bank for making it hard for banks to retain dollars in physical form.
