High inflation rate of Burmese currency creates livelihood hardships for grassroots

June 3, 2024

HURFOM: Since late May, 2024, the gold price and the exchange rate for the US Dollar and Thai Baht have risen sharply resulting in a rapid drop in the value of Burmese currency. This has created serious livelihood challenges for the grassroots.

Unsettled politics, barriers to border trade have led to the withdrawal of foreign investments from the country. In turn, the country’s gross domestic product continues to shrink.

“The prices of gold, dollar and basic commodities have been increasing very quickly but the Burmese currency is at the bottom. People have a very difficult life. Now, school season is coming. Each student’s educational year will cost about 100,000 MMK. If the commodity price goes up and the Burmese currency goes down, I have to go abroad for work,” said a housewife.

High inflation rate has a huge impact on “hand to mouth” workers and they have been experiencing a tougher livelihood.

“I’m a construction worker and I have to work from 6 am to 6 pm to earn 15,000 or 20,000 MMK. Then, we have to pay the supervisor 1,000 MMK. I have no motorbike and have to accompany my friend so I have to pay him for the gasoline fee. Not much is left in my hand. In order to have food daily, we have to minimize our meals as much as we can. If there is no construction in the rainy season, it will get even tougher,” said a construction worker.

The exchange rate for the Thai Baht has fluctuated a great deal with time, so Thai product importers have a huge challenge with their business.

“The exchange rate is varying all the time. If a product is expensive, people are unable to buy it. We have to store meatballs in the chest/ refrigerator so there is an additional cost of electricity bill. If Thai Baht continues to rise, I think I should stop my business,” said one vendor.

On May 29th, 2024, 16.32 grams of gold was priced at 5.8 million MMK — a historic high. 1 US Dollar is equivalent to 4,500 MMK while 1 Thai Baht is about 120 MMK.

Written by HURFOM · Filed Under News