Myanmar Kyat: Understanding the Burmese Currency

The Myanmar Kyat, also known as the Burmese currency, is a fascinating topic. It's the official currency of Myanmar, a country located in Southeast Asia.

The Kyat is divided into 100 subunits called pyas. However, the pya is no longer in circulation, so you won't need to worry about dealing with it.

You can exchange your money for Kyat at the airport, banks, or currency exchange offices. Be aware that the exchange rate may vary depending on the location.

The Kyat is available in various denominations, including 100, 200, 500, 1000, 2000, 5000, and 10,000.

The Myanmar kyat has a rich history that spans over a century. It was first introduced in 1852 as a gold and silver coin-based currency.

The British controlled the country from 1824 to 1948, during which time silver coins were considered equivalent to the Indian rupee. This equivalence was due to India's status as part of the British Empire at the time.

In 1942, the Japanese occupied the country and introduced their own currency, which was later abandoned after their departure in 1945. This currency was based on the rupee and was subdivided into 100 cents.

The version of the kyat that continues to be used today began circulation in 1952, initially valued at par with the rupee.

The third kyat was introduced on July 1, 1952, and it replaced the rupee at par. This new currency was a significant change for the country.

The present kyat was subdivided into 100 pyas, marking a shift away from the previous system. This decimalisation was a major overhaul of the currency.

In 1962, the government nationalized and merged all of the country's banks into one entity, as it transitioned the country into a socialist monetary system. This move had a profound impact on the economy.

The value of the kyat has declined substantially since its introduction in 1952. Its value has been a topic of discussion among economists and policymakers.

The Central Bank of Myanmar is responsible for managing the circulation and issuance of kyat today. This is a far cry from the early days of the currency.

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The Myanmar Kyat (MMK) is the national currency of the Republic of the Union of Myanmar, the country formerly known as Burma. One kyat subdivides into 100 pyas. The currency floats against the U.S. dollar (USD). As of Dec. 5, 2021, one USD was equal to 1,776.500 MMK. In writing, the symbol "K" represents the currency.

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The currency exchange rates for the Myanmar Kyat (MMK) have been quite volatile over the years. The official exchange rate varied between Ks. 5/75 and Ks. 6/70 per US dollar from 2001 to 2012.

The black market rate, however, told a different story. It ranged from Ks. 750/- to Ks. 1,335/- per USD, with a peak of Ks. 850/- per USD during the 2003 Myanmar banking crisis.

In 2012, the Central Bank of Myanmar announced that the value of the kyat against the US dollar would float, setting an initial rate of Ks. 818/- per US dollar. This move aimed to curb the black market exchange of kyats.

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The informal market rate has plummeted to 3500 kyats per USD in August 2022, after a coup d'état caused the overthrow of the elected government. By May 2024, the exchange rate had increased to 5000/- per USD on the black market.

Here is a table showing the current exchange rate of MMK to USD in 2016:

The top currency pairings for the Myanmar Kyat include MMK to USD, MMK to THB, MMK to CAD, MMK to EUR, MMK to AUD, and MMK to CNY.

The Myanmar Kyat, or MMK, has a fascinating history and some unique characteristics. The official exchange rate for the MMK has varied between Ks. 5/75 and Ks. 6/70 per US dollar from 2001 to 2012.

The black market rate, which is often a more accurate reflection of the economy's standing, has fluctuated between Ks. 750/- and Ks. 1,335/- per USD. This rate can decrease during peak tourist season in Burma.

The Central Bank of Myanmar announced in 2012 that the value of the kyat against the US dollar would float, setting an initial rate of Ks. 818/- per US dollar. This move aimed to stabilize the currency and reduce reliance on black market rates.

Foreign Exchange Certificates (FEC), which were mandatory for tourists to buy at least US$200 worth of until 2003, have been abolished. This measure was used to discourage visitors from exchanging on the black market.

The value of the kyat has plummeted to 3500 kyats per USD in the informal market as of August 2022 due to capital flight and inflation. By May 2024, the exchange rate had increased to 5000/- per USD on the black market.

The kyat's poor purchasing power reflects Myanmar's status as one of the poorest countries in Southeast Asia. The country's economy relies heavily on commodity exports, with petroleum and opium being among its largest exports.

Here are some notable exchange rates for the MMK between 2013 and 2021:

The United Nations Conference on Trade and Development has designated Myanmar as one of the least developed countries in the world, which comes with tariff reduction and access to developed countries' markets.

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The Banknotes and Certificates of Myanmar Kyat are quite fascinating. The Burma State Bank issued notes for K 1/-, Ks. 5/-, Ks. 10/- and Ks. 100/- in 1944, followed by a further issue of Ks. 100/- notes in 1945.

These early banknotes featured a peacock and the value in Burmese script on the obverse side. The dimensions and main colors of these notes varied depending on the denomination. The K 1/- note was 109 × 63 mm with a blue main color, while the Ks. 100/- note was 160 × 90 mm with a bright orange main color.

The Union Bank of Burma introduced the first kyat notes in 1958, which were similar in design to the last series of rupee notes. These notes were denominated in K 1/-, Ks. 5/-, Ks. 10/-, Ks. 20/-, and Ks. 50/-, with the Ks. 50/- and Ks. 100/- notes being demonetised in 1964.

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Here is a table showing the current exchange rate of Myanmar Kyat to US Dollar as of 2016:

In 1993, Myanmar began issuing foreign exchange certificates (FEC) denominated in US dollars, which were exchanged on a parity ratio with the kyat and valued separately from the regular kyat. The FECs were discontinued and gradually withdrawn in 2013.

In 1944, the Burma State Bank issued notes for K 1/-, Ks. 5/-, Ks. 10/-, and Ks. 100/-.

The 1944-45 series of banknotes had unique dimensions, with the K 1/- note measuring 109 × 63 mm, the Ks. 5/- note measuring 130 × 72 mm, and so on.

These notes featured a peacock on the obverse side, with the denomination written in Burmese script. The main colors of the notes were blue, red, green, and bright orange.

The Ks. 100/- note had two different designs, one with a bright orange color and another with a dark blue color, introduced in 1945.

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The 1952 introduction of the decimal system by the Union Bank of Burma decimalised the kyat into 100 pyas, marking a significant change in the currency.

The first kyat notes, introduced in 1958, were similar in design to the last series of rupee notes, with denominations of K 1/-, Ks. 5/-, Ks. 10/-, and Ks. 100/-.

In 1958, the Union Bank of Burma introduced Ks. 20/- and Ks. 50/- notes, which were later demonetised on 15 May 1964.

The Burmese currency has no indication of the date in which the note came into circulation nor the signature of the issuing authority since the introduction of the Third Kyat.

Here's a list of the denominations and their corresponding dimensions:

Most daily transactions in Burma are rounded up to the nearest Ks. 10/-, making the K -/50, K 1/-, and Ks. 5/- notes relatively rare.

In 1993, Myanmar began issuing foreign exchange certificates (FEC) in denominations of $1, $5, $10, and $20, which were exchanged on a parity ratio with the US dollar.

These certificates were valued separately from the regular kyat and were used to facilitate transactions for foreign visitors to Myanmar.

The conversion of foreign currency into kyats was made illegal, as exchange rates were set artificially high, making it difficult for people to exchange currency.

As a result, two valuations of the Myanmar kyat emerged: the official rate, which averaged around Ks. 6/- = US$1, and the black market rate, which averaged tens of times higher.

To exchange currency, foreign visitors would often have to seek out illegal peddlers.

On 1 April 2012, the Government of Myanmar allowed for a managed float of the kyat and legalized the use and exchange of foreign currencies in Myanmar.

This move aimed to better reflect the global exchange rates, attract investment, and weaken the black markets.

The government announced the discontinuation and gradual withdrawal of FEC's on 20 March 2013.

Here's a table showing the FEC denominations: