The rapid depreciation of Myanmar’s currency is causing a surge in prices of essentials like food and medicine, impacting regular households in the country. The Myanmar kyat has been extremely volatile, dropping to 7,500 to the dollar in the black market from 5,000 earlier in the month. Reports suggest that the junta is printing more kyat to support the currency, leading to the plunge.
Residents have reported a significant increase in the cost of groceries and medicines in Myanmar’s main cities due to the kyat’s fall, rising transportation expenses, and disruptions in border trade. These factors have resulted in a spike in prices, making it difficult for ordinary people to afford basic necessities.
Myanmar, once considered a promising frontier market, has been in turmoil since the military takeover in 2021, leading to investor retreat, sanctions, and a nationwide armed rebellion. The junta’s struggle to control the economy has worsened poverty in the country, with economic growth expected to remain low this fiscal year.
Household incomes have declined, unemployment has risen, and inflation is on the rise, creating immense pressure on the population. The regime’s attempt to stabilize the currency through arrests of traders and dealers has not been successful, leading to further economic challenges.
Imported products have become more expensive, and the availability of essential medicines has been affected by ongoing conflicts. The lack of a proper economic plan by the military government has worsened the situation, fueling inflation and economic crisis.
Analysis: The depreciation of Myanmar’s currency and the subsequent rise in prices of essentials have severely impacted ordinary households, making it difficult for them to afford basic necessities. The ongoing economic challenges in the country, coupled with political instability, are likely to continue affecting the population’s livelihoods and well-being.