Bangkok, August 21, 2024 – Myanmar is grappling with severe economic turmoil as the national currency, the kyat, has plunged to an unprecedented low, exacerbating the already dire situation for many households. The steep decline in the value of the kyat has led to soaring prices of essential goods, including food and medicine, leaving families across the country struggling to make ends meet.
The kyat’s value nosedived to 7,500 per dollar on the black market last week, a sharp drop from 5,000 just earlier in the month. This drastic depreciation is believed to be the result of the Myanmar junta’s decision to print more currency in an attempt to stabilize the economy. Although the kyat has since seen a slight recovery to around 6,000 per dollar, the prices of necessities have remained high, deepening the economic crisis faced by ordinary citizens.
Residents in Myanmar’s major cities have reported significant increases in the cost of groceries and medicines, with some households witnessing their expenses nearly doubling in recent weeks. The combination of economic instability, ongoing civil conflict, and a crumbling economy has made daily life increasingly challenging for the population.
The World Bank has highlighted that poverty in Myanmar is now more widespread than at any time in the past six years, with economic growth expected to stagnate at around 1% for the current fiscal year. The junta’s economic policies and decision-making are being widely criticized for contributing to the rising inflation and the broader economic woes affecting the nation.
As Myanmar continues to navigate this period of economic uncertainty, the effects of the currency crisis are being felt most acutely by the country’s vulnerable populations, who are struggling to afford even the most necessities.
