Burma's political unrest has led to an economic collapse.

Myanmar kyats transferred to a driver to pay for petrol at Botahtaung Township gas station in Yangon

Bangkok: Banking; The military coup in Burma has delayed its economy for years, with decades of political unrest and violence affecting trade and livelihoods and impoverishing millions. Southeast Asia was hit by an epidemic in 2020, hurting its lucrative tourism sector.

Political unrest since the military overthrew the civilian government on February 1 has added to the misery of the 62 million people who have been forced to pay a substantial kyat for food and other necessities.

Without political turmoil, economic prospects are blurred.

UN humanitarian chief Martin Griffiths last week appealed to Burma's military leaders to allow unhindered access to more than 3 million people in need of "life-saving" assistance amid growing conflict and insecurity. With COVID-19, the economy collapsed. Griffiths said he was more concerned about reports of rising food insecurity in and around cities.

Hundreds of jobs have been lost and poverty has deepened in Burma as inflation soared.

"Imported food and medicine costs twice as much as before," he said. . . So people buy only what they need. If traders sell for 1,000 kyat a day and 1,200 for the next day, the seller will lose money, ”said Ma San San, a trader selling Thai goods in Moulmein Township.

Myanmar's economy is projected to shrink 18.4 percent by 2021, according to the Asian Development Bank.

The civilian government that was overthrown in February has been slow but steady in shaping Burma, which has been isolated for decades under previous regimes and decades of isolation.

Exports have risen over the past decade after the generals eased decades of power.

Eager to harness a young, low-cost workforce, foreign investors are setting up garment and other light goods factories.

Rangoon was transformed into a ruined building during the British colonial era, and new roads and bridges were built. Industrial zones; It paved the way for the construction of shopping malls and modern apartments.

He created his own business, created jobs, and met long-term undesirable needs for products such as cell phones and new cars.

However, the military still controls many key government ministries and industries, and corruption and cronyism are on the rise.

Within months of the political crisis in Burma, the country returned to a time of black market trading and dollar hoarding.

"Prices are going up now because most people have less confidence in the Myanmar currency and are buying more dollars," said Soe Tun, chairman of the Myanmar Automobile Manufacturers and Distributors Association and an official with the Myanmar Rice Association.

Global shortages and the sharp rise in the cost of container shipments have hampered trade, and China has closed Burma's border crossings to curb the spread of the coronavirus.

The Commander-in-Chief of the Armed Forces, Senior General Min Aung Hlaing, who led the military occupation, recently told the government that trade fell 22 percent year-on-year in the first 10 months from October 2020 to July 2021. He said Myanmar had a trade deficit of $ 368 million.

The less exports to Myanmar, the better. The less foreign exchange earnings, mainly in dollars, Green refunds are rarer and more expensive than the kyat.

It was bought in January for 1,300-1,400 kyats per dollar. In late September, it hit a record high of 3,000 kyat among money changers on Shwebontha Road in downtown Rangoon, known as Broker Street.

Cooking oil Cosmetics Food Electronics Fuel oil and other import costs in dollars; The kyat appreciated for cosmetics and other necessities.

Authorities have suspended the import of vehicles from October 1 to maintain the exchange rate. The Central Bank of Myanmar has intervened in the market 36 times since February to control the devaluation of the kyat.

But traders say such efforts have had little effect, as most of the dollars sold by the central bank go to military businesses.

"Some people say that the dollars issued by the central bank do not meet domestic demand, and we accept that," General Zaw Min Tun, the army's chief of staff, told reporters.

"The government should be more responsible for what happened in our time than blaming the past," he said.

"I want to say that our government is trying to find the best solution," he said. Some people have set up money exchange groups to exchange kyat online despite the risks, and the central bank recently issued a warning that it would ban such illegal transactions.

“Online is easier these days. Easily find buyers or sellers. But you need to build trust between seller and buyer. There are also scammers online, ”said Ko Thurin, who often posts dollars on the Myanmar Money Changer Group.

Fuel shortages have become a major problem. The cost of petrol imported from Myanmar, in part due to rising global oil prices, more than doubled to a record high of about 700 kyat to 1,500 kyat per liter in January.

Zaw Min Tun, a military spokesman, said Burma was pursuing long-term hydropower and wind power projects as it struggled to save energy and cut imports as it could not meet its oil needs.

Top leader Sr. Gen. Min Aung Hlaing urges people to reduce energy consumption

"It is difficult to buy dollars," he said. Oil companies no longer sell us on credit, ”said an official from Max Energy, a major conglomerate that operates several gas stations.

"You can not buy everything you want. It is difficult for us to build trust with them. So at the moment we are trying not to lose much."

He blamed the political crisis.

"Even in our country, there is no doubt that people do not trust each other and that foreigners do not trust us because the banking system is in turmoil," said an official who spoke on condition of anonymity. Of title

"We have to raise car prices because of the sharp rise in petrol prices," he said. But passengers do not want to pay. Now I know that everyone is poor and they are using buses instead of taxis, ”said Moe Myint Tun, a taxi driver in Rangoon.

Like all other modern conveniences, Banking services are often subject to protests and strikes, ranging from 5% to 7% for those who want to access cash using mobile banking applications and at financial institutions called Pay Money.

"Inflation automatically reduces the value of the money we have," he said. If you can not withdraw money at the bank, you have to pay a commission at Pay Money shops. In the end, we have nothing left. ”Su Yee Win Aung is a sales clerk at a telecommunications company in Rangoon.

"It can be said that this is the most difficult time for us.

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