4-6-2024 (YANGON) In a sweeping crackdown aimed at stabilizing Myanmar’s rapidly depreciating currency, authorities have arrested 35 individuals over the past two days, targeting gold and foreign exchange traders as well as real estate agents facilitating the sale of properties abroad. This stern action underscores the military government’s determination to rein in the country’s tumultuous economic landscape.
State media reports reveal that among those apprehended are five individuals charged with illegally selling condominium units in neighboring Thailand and fourteen others accused of destabilizing the exchange rate. The arrests come as the Myanmar kyat plummeted to a record low of around 4,500 per US dollar on the black market last week, according to accounts from five foreign exchange traders.
For years, black market rates for the kyat have significantly exceeded the reference rate set by Myanmar’s central bank, currently pegged at 2,100 kyat per dollar. This disparity has fueled concerns over the country’s economic stability and prompted the authorities to take decisive action.
The state-run Global New Light of Myanmar newspaper, in its Tuesday edition, carried photographs of over a dozen suspects, declaring, “The government is working towards the stability of the country and the rule of law.” It further stated, “Security organizations have taken action against business people engaged in speculation to hinder the country’s economic development.”
In a separate report on Monday, the newspaper disclosed that an additional 21 individuals had been apprehended for allegedly destabilizing gold prices, underscoring the authorities’ determination to curb illicit activities that could exacerbate the country’s financial woes.
Myanmar, a nation of approximately 55 million people, has been grappling with political and economic turmoil since the 2021 military coup, which ousted an elected civilian government after a decade of tentative democracy and economic reform. The country’s already fragile economy, weakened by decades of military rule and the pandemic, has wilted further since the coup, with foreign investment drying up and Western sanctions compounding the challenges.
According to the United Nations Development Programme, poverty rates in Myanmar have nearly doubled, rising from 24.8% in 2017 to a staggering 49.7% in 2023, reflecting the dire consequences of the ongoing crisis.
The shadow National Unity Government (NUG), comprising former lawmakers and other opponents of the junta, has accused the military government of exacerbating the country’s economic problems by printing large volumes of currency since seizing power and ramping up military spending.
Tin Tun Naing, the NUG’s finance minister, stated during an online press conference on Monday, “We understand that they are continuing to print kyat,” further fueling concerns over the currency’s stability.
