The Central Bank of Myanmar Will Invest $100 Million to Help With The Fuel Shortage

The central bank of Myanmar, which is under junta control, has announced that it will provide $100 million to struggling importers so they may buy petrol and oil.

Since the military took over in2021, the value of the local kyat has sharply declined in relation to the US dollar, making it more difficult for importers to pay for gasoline shipments.

Recently, several citizens of Yangon’s commercial center have been spending the night in line outside gas stations in the hopes of getting gasoline for their cars.

The eight million-person city’s businesses and hospitals that depend on generators for power during periodic blackouts are also impacted by the scarcity.

In a statement on Wednesday, it stated, “The Central Bank of Myanmar has arranged to provide US$100 million towards the fuel oil sector in the foreign currency market.”

It did not specify when the money would be disbursed or how much the dollar would be worth.

Although the junta’s official exchange rate is 2,100 kyat to the US dollar, a US dollar is worth about 6,500 kyat on the dark market.

Following the coup, which precipitated massive pro-democracy rallies that were put down by a military onslaught, Myanmar’s economy has collapsed.

The junta began a crackdown on fuel hoarding in December of last year, threatening to imprison anyone discovered in possession of more than 180 liters of gasoline without a license.

As the value of the kyat falls, the cost of staples, rice, and cooking oil has increased.

According to state media, the central bank invested more than $16 million in the foreign exchange market last month “with a view to… stopping the currency devaluation.”

The Asian Development Bank stated earlier this year that inflation was predicted to reach roughly 15.5% for the fiscal year ending in March of next year.