Kyat spirals to all-time low

Kyat spirals to all-time low

YANGON (AFP): Myanmar's currency, the kyat, has spiraled to an
all-time low against the dollar, triggering fears here of a major
government anti-inflation intervention in the economy.

On the black market, the truest indicator of the value of
Myanmar's currency, the kyat is now valued at about 400 to the
dollar, its lowest point in its history.

In a commentary Sunday in the state-owned Mirror daily, a
writer linked to the government said the state has recently
engaged in a "market-friendly intervention" in the economy in an
effort to prop up the kyat.

This intervention reportedly includes government price
subsidies for gasoline and diesel fuel and a concerted crackdown
on the circulation of US dollars in Yangon and other tourist
sites.

But the Mirror commentary denied persistent rumors the Yangon
junta would soon introduce 5,000 and 10,000 kyat notes in an
attempt to keep a lid on runaway inflation.

"Political adversaries and their lackeys ... are attempting to
stab the government behind the back" by "spreading false rumors
about price manipulation," the commentary said.