Myanmar is to accept the Thai Baht as currency for border trade amid fears over the strength of the US Dollar and the effect international conflict might have on exchange rates.
Chinese currency will also be accepted for international trade, and officials are considering including the Indian Rupee in the plan as well. Myanmar’s junta government believes that this plan will help their economy to bounce back from the slump it has experienced since the coup which put them in power last year.
Myanmar’s Kyat has, according to a spokesperson from Thailand’s Tak Province’s Federation of Thai Industry, been exchanged with Baht at the border for decades. The spokesperson, Ratchada Thanadirek, believes the plan to accept Baht will have little effect.
The plan appears to be a response to the effect that the conflict in Ukraine has had on international exchange rates: the Russian ruble has been in freefall since the conflict began, due largely to financial sanctions, which continue to be introduced by more governments.
Meanwhile Myanmar’s junta government has been one of Russia’s staunchest supporters in the Ukraine conflict.
The Myanmar military seized power on 1 February 2021, which has caused the EU to bring sanctions against the new government.
Laos made an official statement on Myanmar through its Ministry of Foreign Affairs last year, stressing the importance of maintaining political stability in all ASEAN Member States in order to achieve a stable, peaceful, and prosperous ASEAN Community.