Implications Of Currency Strength

Myanmar has experienced a rare and rapid increase in its black market exchange rate in recent months as a number of factors have combined to boost demand for the currency. While the move may reflect the impact of the recent drive to privatise state assets and may convey some economic benefits to the country, the structure of the economy suggests that the downside factors may outweigh the positive factors. Meanwhile, we expect the recent strength in the kyat to prove transitory and are forecasting continued depreciation over the longer

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