Burmese kyat plunges as laundering law hits, border set to reopen
Burma's currency, the kyat, has plunged more than 17 percent against the dollar over recent days, in the latest shock to hit the military-run nation's crippled economy, traders and analysts say.
The recent introduction of a money-laundering law, the prospect of Thai border checkpoints reopening from Sunday and a continued crackdown on illegal currency trading are all contributing to the kyat's fall.
"Never mind that the dollar is not doing well elsewhere... it is a scarce commodity (here)," said one small importer.
Burma Economic Holdings, a military-owned corporation, has also ventured into the market to purchase dollars in recent weeks, observers said, fuelling the decline.
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