Foreign currency
Individual Documents
| Title: | | Impacts of foreign exchange auctions on the informal market rate in Myanmar |
| Date of publication: | | August 2015 |
| Description/subject: | | "Since the abolition of the official peg and the introduction of a managed float in April 2012, the Central Bank of Myanmar has operated the daily two–way auctions of foreign exchange aimed at smoothing exchange rate fluctuations. Despite the reforms to the foreign exchange regime, however, informal trading of foreign exchange remains pervasive. Using the daily informal exchange rate and Central Bank auction data, this study examines the impacts of auctions on the informal market rate. First, a VAR analysis indicates that the official rate did not Granger cause the informal rate. Second, GARCH models indicate that the auctions did not reduce the conditional variance of the informal rate returns. Overall, the auctions have only a quite modest impact on the informal exchange rate..." |
| Author/creator: | | Koji KUBO |
| Language: | | English |
| Source/publisher: | | Institute for Developing Economies (IDE) Discussion Paper No. 532 |
| Format/size: | | html,pdf (386K) |
| Alternate URLs: | | http://www.ide.go.jp/English/Publish/Download/Dp/532.html |
| Date of entry/update: | | 06 April 2018 |
|
| Title: | | Transition from black to official markets for foreign exchange in Myanmar |
| Date of publication: | | March 2015 |
| Description/subject: | | Abstract: "We address the puzzle why the black market for foreign exchange thrives in Myanmar despite the successful unification of multiple exchange rates. A closer look at the black market reveals that its enduring competitiveness stems from its lower transaction costs. A question arising from this observation is how the official market, namely banks, can compete with and replace the black market. Our empirical analysis based on an original questionnaire survey of private export firms regarding their choices of currency trading modes suggests that banks can attract exporters by exploiting the economies of scope between currency trading and lending.".....Keywords: Myanmar, exchange rate unification, black market for foreign exchange, economies of scope in banking |
| Author/creator: | | Koji KUBO |
| Language: | | English |
| Source/publisher: | | Institute for Developing Economies (IDE/Jetro) |
| Format/size: | | pdf (414K) |
| Alternate URLs: | | http://www.burmalibrary.org/docs21/IDE-Myanmar-2015-transition.pdf |
| Date of entry/update: | | 01 September 2015 |
|
| Title: | | Deposit Dollarization in Myanmar |
| Date of publication: | | August 2014 |
| Description/subject: | | Abstract:
Myanmar has peculiar conditions of
deposit
dollarization that were shaped by
administrative controls. On the one hand, restrictive
controls
encouraged
the
accumulation of foreign currency deposits (FCD). On the other hand, foreign
currency loans (FCL) were
not practiced
officially; therefore, FCD was not utilized
for
credit.
Given the adverse effects and
persistence
of dollarization in other
dollarized economies and the recent recovery of local currency deposits in Myanmar,
this
paper opts for
the
prohibition of FCL and offers
policy measures for
de-dollarization......Keywords:
dollarization,
foreign currency deposits,
foreign
currency loans, Myanmar
JEL classification:
F31, E41, O53 |
| Author/creator: | | Koji KUBO |
| Language: | | English |
| Source/publisher: | | Institute for Developing Economies (IDE) Discussion Paper 473 |
| Format/size: | | pdf (360K) |
| Date of entry/update: | | 09 October 2014 |
|
| Title: | | Sources of Fluctuations in Parallel Exchange Rates and Policy Reform in Myanmar |
| Date of publication: | | February 2013 |
| Description/subject: | | Abstract:
"Myanmar maintained a multiple exchange rate system, and the parallel market exchange rate was
left untamed.
In
the last two decades,
the
Myanmar kyat
exchange rate of the parallel market has
exhibited the sharpest fluctuations
among Southeast Asian currencies
in real terms. Since the
move to a managed float regime in April 2012, the question arises of whether exchange rate
policies
will be
effective in
stabilizing
the real exchange rate. This paper investigates the sources
of
fluctuations
in
the
real
effective
exchange rate using
Blanchard and Quah’s
(1989)
structural
vector autoregression model. As nominal shocks can be created by exchange rate policies, a
persistent impact of a nominal shock implies
more
room for exchange rate policies.
Decomposition of the fluctuations into nominal and real shocks indicates that the impact of
nominal shocks is small and quickly diminishes, implying that
complementary
sterilization is
necessary for effective
foreign exchange market interventions"...Keywords:
real and nominal
effective
exchange rates, structural VAR, Myanmar...
JEL classification:
F31, F41, O53 |
| Author/creator: | | Koji KUDO |
| Language: | | English |
| Source/publisher: | | IDE-JETRO Discussion paper No. 388 |
| Format/size: | | pdf (491K) |
| Date of entry/update: | | 03 July 2013 |
|
| Title: | | Real Exchange Rate Appreciation, Resource Boom, and Policy Reform in Myanmar |
| Date of publication: | | July 2012 |
| Description/subject: | | In the five-year period from 2006 to 2011, the real exchange rate of the Myanmar kyat appreciated 200 percent, signifying that the value of the US dollar in Myanmar diminished to one third of its previous level. While the resource boom is suspected as a source of the real exchange rate appreciation, its aggravation is related to administrative controls on foreign exchange and imports. First, foreign exchange controls prevented replacement of the negotiated transactions of foreign exchange with the bank intermediation. This hampered government interventions in the market. Second, import controls repressed imports, aggravating excess supply of foreign exchange. Relaxation of administrative controls is necessary for moderating currency appreciation. |
| Author/creator: | | KUBO Koji |
| Language: | | English |
| Source/publisher: | | Institute for Developing Economies (IDE DISCUSSION PAPER No. 358) |
| Format/size: | | pdf (252K) |
| Date of entry/update: | | 13 September 2012 |
|
| Title: | | Economic Anomalies |
| Date of publication: | | 08 January 2003 |
| Description/subject: | | January 08, 2003—"During Burma’s time as a Socialist state, citizens were prevented by foreign exchange proceed laws to possess any foreign currency. Minor adjustments were made to this situation after 1988 when the military junta allowed a number of businessmen to open foreign currency accounts at two state-owned banks: the Myanma Foreign Trade Bank (MFTB) and the Myanma Investment and Commercial Bank (MICB)..." |
| Author/creator: | | Danu Maung |
| Language: | | English |
| Source/publisher: | | "The Irrawaddy" Commentary Archive |
| Format/size: | | html (12K) |
| Date of entry/update: | | 03 June 2003 |
|
| Title: | | Spectre of '88 Hangs Over Currency Woes |
| Date of publication: | | February 2001 |
| Description/subject: | | "The steady fall of Burma’s currency, the kyat, and the widening gap between the value of the US dollar
and the dollar-denominated Foreign Exchange Certificate (FEC) have raised the possibility of renewed
unrest in the military-run country..." |
| Language: | | English |
| Source/publisher: | | "The Irrawaddy", Vol. 9. No. 2 (Business section) |
| Format/size: | | html |
| Date of entry/update: | | 03 June 2003 |
|
| Title: | | Kyat Turmoil |
| Date of publication: | | August 1997 |
| Description/subject: | | In July the Burmese kyat declined from 185 to 280 to the US dollar. Then, it fell to 300 kyat. |
| Language: | | English |
| Source/publisher: | | "The Irrawaddy", Vol. 5. No. 4-5, |
| Format/size: | | html |
| Date of entry/update: | | 03 June 2003 |
|
| Title: | | Kyat Reaches New Low |
| Description/subject: | | Burma's national currency has stabilized after reaching an all-time low of around 395 kyat to the US dollar in mid-August. The kyat, which has been under pressure since civil servants received a pay increase of more than 500% in April, recovered to around 385 kyat to the dollar by late August, after briefly testing the 400 kyat per dollar level. |
| Language: | | English |
| Source/publisher: | | "The Irrawaddy", Vol. 8. No. 8, August 2000 |
| Format/size: | | html |
| Date of entry/update: | | 06 September 2010 |
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