Central Bank’s intervention of buying US$34 million has impact on market

22 December 2018
Central Bank’s intervention of buying US$34 million has impact on market
Parliament Public Accounts Committee member Than Soe (Economics).

Parliament Public Accounts Committee member Than Soe (Economics) said that the intervention of the Central Bank in the market by buying US$34 million within two days at the rate of 1,570 Kyat per dollar had an impact on the market.

“A committee member told me that the market exchange rate was about 1,510 kyats at that time. We have to calculate the loss in difference of these two exchange rates. US$34 million at the exchange rate of 1,570 will be about 53 billion kyats. This amount had been put in the market. In the clarification and explanation given by the central bank, they did it in accordance with their procedures and practices under their guideline,” he said.

Public Account Committee invited officials from Central Bank on December 20 in the evening and discussed with them the frequent seizures of fake currency in 10,000 kyat denomination notes and the buying of US 34 million dollars in the market.

A migrant worker Naw Thaw Thwet Hmu who came back recently from Singapore was arrested after she was found with a consignment of these fake 10,000 kyat denomination notes in her possession. It is learned that these fake currency notes were exchanged at a money changer in Singapore by her employer and given to her as her wage on her return journey.

House of Representatives, Banks and Monetary Development Committee Secretary Tin Tun Naing said, “We do not assume most of the people are using these fake currency notes knowingly so that section 101 of Central Bank Law is not applicable with the current cases,” in regarding the people who are being detained with recent seizures of 10,000 kyat denomination fake currency notes.

Moreover, Section 202 of Central Bank Law deals with the counterfeiting of bank notes, coins and revenue stamps and those who are distributing them in the market but the Central Bank has been unable to take action against those people behind the scene who were distributing these counterfeit notes and stamps in the market, he added.

“The important point is arresting the people found with fake currency notes in their possession. We can say section 101 of Central Bank Law is not applicable to these persons found with fake notes,” Tin Tun Naing said.

Section 121 of Central Bank Law enacted in 2013 stipulates that the Central Bank may issue rules, bye-laws, regulations, orders and directives as and when necessary so that the Central Bank will not take action over the recent incidents and cases, he added.

Lower House Bank and Monetary Development Committee member Tin Tun Naing said that in taking action on these recent cases, the central bank should tackle these cases in addressing the grievances of the innocent people by issuing required directives, order and notification and this issue must be tackled with utmost importance and seriousness.

This issue of 10,000 kyat denomination note is menace not only to the Myanmar nationals but also for the foreigners as three foreigners are in detention at present for possession of these fake currency notes.