photo-AFP
Mizzima
The Myanmar junta has printed approximately 30,000 billion Kyats of banknotes since the February 2021 coup, leading to a sharp decline in the value of the Myanmar kyat.
This information was revealed by the National Unity Government’s (NUG’s) Union Minister for Planning, Finance, and Investment, Tin Tun Naing, during an NUG press conference about Myanmar’s economic collapse on 3 June 2024.
Also speaking at the press conference was the Australian economist Sean Turnell who is acting as a special advisor to the NUG’s Interim Central Bank and who was previously Aung San Suu Kyi’s economic adviser.
Both Tin Tun Naing and Sean Turnell said that the junta was trying to resolve the financial crisis by printing more money which was one of the causes of the current high rate of inflation.
“Recently, we have seen an uncontrollable rise in dollar exchange rates and gold prices. This is a consequence of the Military Council’s actions. They are looking for an excuse to say that this is because of market price manipulation by foreign exchange and gold traders. The real issue is the excessive printing of new banknotes since they seized power”, said Tin Tun Naing.
According to Tin Tun Naing since the February 2021 coup, the junta has printed almost 30,000 billion (30 trillion) kyats of banknotes. In comparison, the NLD government printed far fewer, for instance during 2019 and 2020 it printed 3,656 billion kyats of notes.
Tin Tun Naing said that an undisclosed eastern European country was supplying the junta with the necessary ink, paper and raw materials to manufacture the banknotes.
He also explained that most of the newly printed money was mainly being used for military expenses.
According to the junta, military expenditure in the 2021 to 2022 fiscal year was 1,700 billion kyats, in 2022 to 2023 it was 3,700 billion kyats and in 2023 to 2024 it was up to 5,700 billion kyats. The military budget for 2024 to 2025 has yet to be disclosed.
Tin Tun Naing said that the junta is withholding the latest military budget because it does not want the public to know the extent of its spending on the military, which is leading to the junta excessively printing banknotes.
