The decrease in Myanmar’s currency, the Kyat, indicates that the country’s economy is likely near total collapse. The May 30th exchange rate for Kyat and U.S. dollar is 5,100 to 1, which is five times higher than the currency’s value when the National League for Democracy was in power in May 2020.
The currency devaluation points to the downward trend that Myanmar’s industries currently face. For example, companies and consumers have to pay higher prices for imported commodities and goods, which increases inflation while decreasing living standards.
The Kyat’s devaluation also caused significant issues for the exporters’ ability to sell their products at competitive prices on foreign markets.
A weakened Kyat also heightens the severity of Myanmar’s humanitarian crisis since increased prices make it difficult for most citizens to “meet their basic needs.”
