Yangon (AsiaNews/Agencies) - Myanmar authorities announcedthat they would start a managed float of the national currency from 1 April to attract foreign investors. The Central Bank of Myanmar said that the currency, the kyat, will "from now on be determined by supply and demand". Still, it will publish a daily reference exchange rate to influence the market. The purpose of the move is to unify the country's various exchange rates.
In the past few months, Myanmar's civilian government, albeit one backed by the military who ruled the country for decades, has been implementing reforms in order to end sanctions, attract investments and obtain ASEAN presidency in 2014.
The current official exchange rate pegs one US dollar at 6.41 kyat, but the latter could be valued as much as 800 kyat to the dollar when it is floated.
Myanmar is rich in natural resources, including oil and gas, lumber and precious stones. The government wants to develop them and needs foreign investments.
At present, China is the country's main trading partner, but recent measures have been praised by the International Monetary Fund and Western powers.
Experts also believe that a managed float would cut red tape and discourage corruption, due to the existing dual (fixed-black market) exchange system.