YANGON, Aug. 14 (Xinhua) -- The central bank of Myanmar has announced removing trading band of +/- 0.8 percent on exchange of Myanmar Kyat against U.S. dollar to control market fluctuation in wake of continuous kyat depreciation.
Issued on late Monday, the bank's notification applies to the banks holding authorized dealer license - A.D and money changer license M.C.
"We can't predict the consequences of this, but we need to control the market," U Than Lwin, senior advisor of KBZ bank, told Xinhua.
The central bank has set the exchange rate to 1,460 kyats versus 1 U.S. dollars on Tuesday.
Meanwhile, the central bank is monitoring the foreign currency market to prevent price manipulation, a key reason of exchange rate destabilization.
It has also been selling about 100,000 U.S. dollars' notes daily to the private banks to cope with demand, aiming to stabilize currency exchange rate in the country.
