Prior to 1962, Myanmar (Burma) use to be the richest country in Asia up until a military coup ended the country’s democratic government. The military occupation since then has greatly isolated the country to the global economy. Myanmar over the last few years has had a very difficult time achieving both monetary and fiscal stability resulting in a domestic banking crisis.
Economic Statistics
GDP as measured by purchasing power parity at $74 billion USD (2004) with corresponding GDP/Capita at $1,700 USD. GDP growth estimate for 2005 is at 1.5 percent. Inflation rates have year 2004 at 17.2 percent, year 2003 at 50 percent, 1999 at 30 percent, years 1995-2000 inflation at 27 percent annually. Historically, large fiscal deficits have persisted. National foreign exchange reserves for Myanmar including gold stood at $590 million USD for year 2004. Myanmar is a natural gas exporter, large global producer of illegal opium.
CURRENCY: ISO Symbol ‘MMK’, Myanmar kyat. At time of review on September 12, 2005, the exchange value for the kyat was valued at 6.42 MMK to the US-dollar (USD) and/or 7.88 to the Euroland euro (EUR). The exchange rate regime follows that of a multiple official exchange rates. The black market exchange rate provides for a completely different valuation picture. In late August 2005, black market quotes have the kyat at 1170 MMK to the USD.
CURRENCY HISTORY: the Myanmar kyat was introduced in 1989, previously, the former Burmese kyat came into inception in July 1952. The kyat during its tenure has been debased several times. Recent official historical exchange quotes include the following: year 2003 at 6.07 MMK to the USD, 2002 at 6.57, 2001 at 6.68, year 2000 at 6.42, August 1999 at 6.22, January 1998 at 6.39, 1997 at 6.24, 1996 at 5.91, 1995 at 5.66, 1994 at 5.97 and 1993 at 6.15. During year 2004, quotes for black market exchange rates ranged from 815 to 970 MMK to the USD, year 1998 at 330 MMK, August 2000 at 395.
CURRENCY FORECAST: the economy is still trying to find stability as a large black market component is evident although there are signs of the government slowly opening up the economy. The country’s military regime is encountering democratic pressures as recent coup rumours have helped to fuel kyat depreciation. Myanmar is indeed rich in natural resources including that of natural gas, agricultural and minerals. There is some foreign investment taking place within the country’s mining industry. Further, the government is now opening up the tourism industry as Myanmar has spectacular sites to visit including historical Temples and ancient structures. Myanmar has a superb geographical location with nearby large wealthy foreign markets for its goods/resources & services coupled with its cheap labor pool.
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UPDATED: September 12, 2005
