Crowding Burmese Migrants Create Inflation on The Border

 

Independent Mon News Agency

May 5, 2005

 

As Burmese migrant workers crowd along the Thai-Burma border, the value of Burmese currency (Kyat) decreases further. The purchasing rate for one Thai baht is 25 kyat and 20 coins, and the selling rate is 24 kyat and 50 coins, say foreign exchanges in Myawaddy, Kaw-Thaung and Three Pagoda Pass along the border.  

 

“24 kyat and 50 coins by cheque transfer is the highest rate so far this year,” said Mr. Lun, a foreign exchange owner based in Three Pagoda Pass.

 

“Migrants who came back last month, all brought kyat. The selling price was one baht to 22 kyat and 50 coins or 23 kyat and 20 coins. Today, all those who have returned to Thailand have brought a lot of kyat. Because of this, the Burmese kyat is of less value,” claimed Nai Lun.

 

Further, Ms. Ma Khaing said, “If we compare last month with this month, the Kyat currently has less value.”

 

Regarding foreign exchange in Three Pagoda Pas, it often has been unstable.  When the motor road is blocked to Mon State of Burma, the goods are expensive and it can lead to deflation. Transport and travel along Three Pagoda Pass road is different to other areas. While the other roads can be used in all seasons, the Three Pagoda Pass road can be used only during dry season. The Burmese-Thai exchange rate is unstable in Three Pagoda Pass, like other areas.

 

“The inflation of Burmese currency occurs on every border.  It has the same value in other border areas.  There is not much difference,” stated Nai Lun. 

 

“When the Kyat is deflating, the price increases by 10 coins to 20 coins every day until it comes to a stable price.  There is no way of knowing how long this stable period will last.   The price in the border sometimes goes up and sometimes goes down”, accordingly to Nai Lun.

 

In 2003, Burmese currency was decreased and the purchasing rate for one Thai baht was 30 kyat. The Burmese kyat used to have 22 kyat as the highest rate.

 

 

For further information, please contact to Independent Mon News Agency

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