Real exchange rate appreciation, resource boom, and policy reform in Myanmar
AbstractIn the five-year period from 2006 to 2011, the real exchange rate of the Myanmar kyat appreciated 200 percent, signifying that the value of the US dollar in Myanmar diminished to one third of its previous level. While the resource boom is suspected as a source of the real exchange rate appreciation, its aggravation is related to administrative controls on foreign exchange and imports. First, foreign exchange controls prevented replacement of the negotiated transactions of foreign exchange with the bank intermediation. This hampered government interventions in the market. Second, import controls repressed imports, aggravating excess supply of foreign exchange. Relaxation of administrative controls is necessary for moderating currency appreciation.
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Bibliographic InfoArticle provided by Asia Pacific School of Economics and Government, The Australian National University in its journal Asian-Pacific Economic Literature.
Volume (Year): 27 (2013)
Issue (Month): 1 (05)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0818-9935
Other versions of this item:
- Kubo, Koji, 2012. "Real exchange rate appreciation, resource boom, and policy reform in Myanmar," IDE Discussion Papers 358, Institute of Developing Economies, Japan External Trade Organization(JETRO).
- F31 - International Economics - - International Finance - - - Foreign Exchange
- O24 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
- Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)
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