Government will take action on the shadowy trade in gold and dollars in order to protect the country's economy

Panic over a falling currency and surging gold prices has put the spotlight on a network of brokers and speculators profiting from – and possibly fuelling – volatility.

“THE GOVERNMENT will take action against the brokers who are manipulating the market and find out why they are doing it.”

When government spokesman U Zaw Htay addressed reporters on September 21, Myanmar’s currency, the kyat, had been enduring a rough few days. Over the last three days it had fallen from K1,565 to the dollar to K1,630, but had also seen wild swings in which it gained or lost as much as K15 – nearly 1 percent of its value – in just an hour, according to websites that track the market rate.

During this three-day period, the US dollar was generally losing value against other currencies; the kyat would normally have been strengthening. It seems that there were indeed other forces at work.

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