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| Version 2 | Version 3 |
|---|---|
| Burma to float kyat in April to attract investment | Burma to float kyat in April to attract investment |
| (about 4 hours later) | |
| Burma has said it will start a managed float of its currency from 1 April to attract foreign investors. | Burma has said it will start a managed float of its currency from 1 April to attract foreign investors. |
| The Central Bank of Myanmar (Burma) said the currency, the kyat, will "from now on be determined by supply and demand". | The Central Bank of Myanmar (Burma) said the currency, the kyat, will "from now on be determined by supply and demand". |
| It is aimed at unifying the country's various exchange rates. | It is aimed at unifying the country's various exchange rates. |
| Burma has been implementing reforms since a civilian government, albeit one led by former generals, took over from the military last year. | Burma has been implementing reforms since a civilian government, albeit one led by former generals, took over from the military last year. |
| 'Eliminate restrictions' | 'Eliminate restrictions' |
| The current official exchange rate pegs one US dollar at 6.41 kyat. | The current official exchange rate pegs one US dollar at 6.41 kyat. |
| However, analysts said when it is floated, the currency could be valued around 800 kyat to the dollar, which is the current unofficial or black market rate. | However, analysts said when it is floated, the currency could be valued around 800 kyat to the dollar, which is the current unofficial or black market rate. |
| Under a managed float system a currency's exchange rate is determined by the market. | Under a managed float system a currency's exchange rate is determined by the market. |
| At the same time the central bank publishes a daily reference exchange rate to influence the market. | At the same time the central bank publishes a daily reference exchange rate to influence the market. |
| "A key part of this programme is to unify the various exchange rates, and gradually eliminate restrictions on current international payments and transfers abroad," said the Central Bank of Myanmar in a statement to state media. | "A key part of this programme is to unify the various exchange rates, and gradually eliminate restrictions on current international payments and transfers abroad," said the Central Bank of Myanmar in a statement to state media. |
| Opening up? | Opening up? |
| Resource-rich Burma wants to attract foreign investment to offset the impact of Western sanctions, however the multiple exchange rates have deterred investors in the past. | Resource-rich Burma wants to attract foreign investment to offset the impact of Western sanctions, however the multiple exchange rates have deterred investors in the past. |
| Burma is rich in gas, timber and precious stones. | Burma is rich in gas, timber and precious stones. |
| Analysts said this was a positive step in dealing with corruption as well. | Analysts said this was a positive step in dealing with corruption as well. |
| "It removes many of the difficulties and corruption incentives that have been in place with this dual [currency] system," said Sean Turnell, a Burma expert at the Macquarie University in Sydney. | "It removes many of the difficulties and corruption incentives that have been in place with this dual [currency] system," said Sean Turnell, a Burma expert at the Macquarie University in Sydney. |
| Key parliamentary by-elections are also being held on 1 April, in which pro-democracy leader Aung San Suu Kyi will be contesting one of the seats. | Key parliamentary by-elections are also being held on 1 April, in which pro-democracy leader Aung San Suu Kyi will be contesting one of the seats. |
| Several Reforms | Several Reforms |
| Burma's military leaders refused to recognise her National League for Democracy (NLD) party's election victory in 1990. | Burma's military leaders refused to recognise her National League for Democracy (NLD) party's election victory in 1990. |
| A total of 45 seats in parliament are being contested in the 1 April vote. | |
| The elections are unique because for the first time the government has allowed foreign election observers, with representatives from the US, EU and Asean due to observe the vote. | The elections are unique because for the first time the government has allowed foreign election observers, with representatives from the US, EU and Asean due to observe the vote. |
| The currency move comes after other reforms by the new government. | The currency move comes after other reforms by the new government. |
| In recent months it has released hundreds of political prisoners, introduced media freedoms and allowed Ms Suu Kyi to run for a seat in parliament. | In recent months it has released hundreds of political prisoners, introduced media freedoms and allowed Ms Suu Kyi to run for a seat in parliament. |