IMF: Burma desperately needs currency reform
A Myanmar laborer undertakes renovation work at a building in downtown Yangon on January 21, 2012.
Just a few days ago, we ran through the reasons why investing in Burma, high on long-needed reforms, could be a mistake.
But a new International Monetary Fund report suggests that, if Burma can successfully seize this "historic opportunity," it must start with currency reform.
As I wrote in our series "Burma Rebooted" several months ago, "Burma’s currency, the kyat, is the mess crying loudest for a fix.
There are no ATMs in Rangoon. Visitors are advised to bring US$100 bills for a black-market exchange.
Rangoon’s fastidious dollar swappers conduct business in back alleys and beneath staircases. They examine visitors' $100 bills as a jeweler would diamonds. An infinitesimal smudge, the mere suggestion of a crease, and the bill is declared unworthy — or at least worth substantially less."
Now imagine trying to transfer several million into Burma for a large-scale project.
However, if Burma (officially titled Myanmar) can sort out its chaotic currency situation, perhaps it can meet the IMF's new predications: a full 6 percent GDP growth in 2013.
The story you just read is available for free because thousands of listeners and readers like you generously support our nonprofit newsroom. Every day, reporters and producers at The World are hard at work bringing you human-centered news from across the globe. But we can’t do it without you: We need your support to ensure we can continue this work for another year.
Make a gift today, and you’ll get us one step closer to our goal of raising $25,000 by June 14. We need your help now more than ever!