Companies begin to feel the heat as import costs climb
Myanmar’s plummeting currency has prompted a vicious circle of rising prices in the import-dependent economy, in which even export-driven companies face rising costs, say businesspeople.
New laws and regulations are urgently needed to control the kyat, they said, which has fallen by more than 25 percent to the US dollar this year to K1300 on 1 December, its weakest since Myanmar adopted a managed float in 2012.
In the unofficial market, the rate has reached up to K1315. The currency seems a one-way bet amid growing government deficits and the near-term prospect of rising rates in the US.
