Mizzima
The prices of Thai commodities in Myanmar are rising again due to the value of the Myanmar kyat falling steeply against the Thai baht in the last month and transport problems.
In the last week of February on the black market, one Thai baht was worth 98 Myanmar kyats, but now the value of the Thai baht is at an all-time high of 105 kyats on the black market. This means that imported commodities from Thailand are more expensive.
There is also an official Myanmar exchange rate of 58 kyats to the Thai baht that has remained fixed for a long time and does not fluctuate with market conditions. Myanmar exporters are forced to exchange at least 35 per cent of the Thai baht they gain from their exports at this official exchange rate. Unfortunately, importers cannot buy Thai baht at the official rate of 58 kyats to the baht. They have to buy all their baht on the black market, paying 105 kyats for each baht they want to spend on imports, raising the price of imports.
According to traders the fall in the value of the kyat is due to domestic inflation, and rising gold and dollar prices.
The price of gold on the domestic market has fluctuated wildly and has been as high as 4,125,000 Kyats per tical (approx. 16.3 gms) for 24-karat gold. Currently, one US dollar is worth about 3,665 kyats on the black market.
Another reason that Thai commodities have become more expensive inside Myanmar is because the main route between the border town of Myawaddy and the rest of Myanmar, the Asia Highway, has been shut due to fighting.
As a result, traders have to use an alternative route through Htawkawkoe which is slower and more expensive than using the Asia Highway. Many different organisations have checkpoints on the Htawkawkoe road where they force traders to pay ‘taxes’ which raises the price of imported commodities even more.
Importers are predicting that the prices of Thai commodities will continue to rise until the Thingyan New Year festival in mid-April because of taxes, the continuing rise in the Thai baht exchange rate and transport difficulties.
Myanmar imports basic foodstuffs, pharmaceuticals, cosmetics, consumer goods, construction materials and general merchandise from Thailand.
Currently, condiments and spices, such as Knorr chicken seasoning powder are in short supply in Myanmar. A Yangon resident said that the prices of all foodstuffs imported from Thailand were rising.
