The Central Bank of Myanmar has announced it will put currency notes of 10,000 kyat denomination into circulation June 15. The new 10,000 kyat banknote is another larger-value currency note to be introduced nearly three years after notes of 5,000 kyat were put into circulation Oct 1, 2009.
The announcement that was made on state radio and television Thursday added that all other existing currency notes and coins would carry on as legal tender, Xinhua reported.
However, Xinhua said the introduction of the new banknotes is expected to drawn public concern and the impact on the financial market and the commodity prices remained to be seen.
There are 11 kinds of banknotes in circulation in Myanmar — 50 pyas, 1 kyat, 5 kyats, 10 kyats, 20 kyats, 50 kyats, 100 kyats, 200 kyats, 500 kyats, 1,000 kyats and 5,000 kyats.
Myanmar’s foreign exchange rate against US dollar has been traditionally designated as around six kyats per US dollar since 1975, while the market exchange rate fluctuated between 780 and 1,000 kyats per dollar for the past several years.
For most of the time in 2011, the foreign exchange rate remained around 800 kyats per dollar.
To eliminate illegal foreign exchange trading, 11 private banks were authorized to open official money exchangers in October last year to enable trade of three kinds of foreign currencies with Myanmar’s kyat. These are the US dollar, Singapore dollar and euro.