After Singapore’s UOB Bank blocked Myanmar accounts, the dollar price and gold prices rose steadily due to the shock of Myanmar’s economy. Now, the price of gold has reached 3,900,000 MMK.
The dollar price and the gold price stayed below 3,000 for a long time from the end of last year until May of this year, giving the impression that the military council has good control. But the market rallied in June after the US announced that it would crack down on two foreign investment banks under the Military Council. The situation was ignited again with the news that the military council would release twenty thousand tons. The plunging Myanmar kyat price has reached its lowest point since UOB Bank banned Myanmar accounts. In more than two months, the price of the dollar went up by about 1000 MMK and the price of gold went up by 1000,000. After the coup d’état, the dollar price and the gold price have gone up like this before, but never before in such a short period of time. Currently, Singapore-based UOB Bank has stopped working with banks in Myanmar, including news that China is demanding repayment of debts from Myanmar. It is because of the consequences of the 20,000 kyats. For the Military Council, it was just another nightmare.