The dollar and gold prices soared today. The dollar price rose from 2,200 to 2,700 MMK and the gold price rose from 19 lakhs to 22 lakhs. Both markets are considered uncontrollable.
Inflation followed. There are speculations that the kyat could become Zimbabwe or Venezuela.
The military council was selling dollars through the central bank, but they did not enter the market and were buying from each other. The main problem is the lack of trust in the military council. In trade, the military coup has stalled exports and increased imports. It was not so obvious at first, but now, more than eight months later, the whole economy is collapsing.
It will only get worse in the future because of the perpetuation of the military dictatorship.
