MNA set K3,000 for dollar exchange rate in booking flights with deposit

Myanmar National Airlines set a US dollar exchange rate at K3,000 in booking flights with a deposit from 4 pm on 30 August, according to a statement released by MNA.
Consequently, agents have to pay K3,000 for a dollar in booking flights with a deposit. They have to pay cash upfront or digital currency which is equivalent to K3,000 to the liability account through mobile banking/iBanking.
Similarly, Air KBZ also charged K3,050 for a dollar from 31 August. The exchange rate was raised from K2,750 set on 26 August.
The statement mentioned that MNA will make further notice to the agents if there are any changes to be made in the foreign exchange rate.
According to the provisions stipulated in section 11, 12 and 13 of the Foreign Exchange Management Law, all the foreign currency earned by locals have to be exchanged for local currency at the Central Bank of Myanmar’s reference rate of K1,850 by opening the accounts at the authorized dealers in the country within one working day, according to the notification released on 3 April.
On 5 August, CBM raised the exchange rate to K2,100.
As a result of this, there is a K900 gap between the CBM’s reference rate and airlines’ rate.
To stabilize the exchange rate, the CBM set the currency trading band at 0.3 per cent for Kyat to fluctuate between these two specified upper and lower exchange rates for the transaction, selling or buying, according to a notification issued by the CBM on 9 November 2021.
Therefore, financial institutions including banks and money exchangers set a dollar value at K2,100 for buying and K2,106 for selling.
Despite the reference exchange rate, a dollar is traded at over K4,000 in the grey market on 31 August.— NN/GNLM