The Central Bank of Myanmar (CBM) injected nearly US$3.95 million into the foreign exchange market on May 29, primarily selling to edible oil-importing companies, alongside smaller amounts allocated to Cut, Make and Pack (CMP) companies and non-trade transactions. This recent intervention continues a series of foreign currency sales aimed at stabilizing the country’s currency and mitigating market volatility.

In detail, the CBM sold over $3.95 million to edible oil importers, approximately $2,650 to CMP companies, and roughly $3,480 worth of foreign currencies for non-trade purposes on May 29. The central bank’s activity in the foreign exchange market has been consistent throughout May. On May 27, it sold more than $1.5 million to edible oil importers, over $3,520 to CMP companies, and over $214,000 for non-trade transactions. Similar interventions included sales on May 26 of around $707,000 to edible oil importers and $32,700 to CMP companies.

Earlier in the month, on May 25, the CBM’s sales totaled over $3 million to edible oil importers, $2.5 million to liquefied natural gas (LNG) importers, and about $34,474 to CMP companies, complemented by $4,930 for non-trade transactions. On May 22, the central bank reallocated approximately $1.9 million, purchased from CMP companies, to edible oil importers. The bank also sold over $2.3 million to edible oil importers, $1.5 million to LNG importers, and $16,603 to CMP companies on May 21, alongside more than $353,000 worth of non-trade foreign currency.

These ongoing currency injections by the CBM are part of efforts to curb instability in Myanmar’s foreign exchange market and to limit the depreciation of the kyat. Since December 5, 2023, the CBM has permitted authorized dealers, including private banks, to engage in online foreign exchange trading freely according to prevailing market rates set by supply and demand dynamics.

Additionally, the CBM has been working with law enforcement agencies since a notification issued on March 15, 2024, to identify and prosecute individuals and entities suspected of manipulating the currency market under existing laws. These measures highlight the central bank’s dual approach of market intervention combined with regulatory enforcement to maintain orderly currency trading and support economic stability.