Myanmar Central Bank will issue its highest denomination banknote as the economy suffers
Myanmar Central Bank will issue its highest denomination banknote as the economy suffers
According to state-run media, the Central Bank of army-ruled Myanmar will issue a new currency worth twice as much as the current largest denomination, possibly in response to the economy becoming increasingly unstable since the generals seized power in 2021.
The motive for producing a 20,000 kyat (about $9.50) note was not explained.
Since the military removed Aung San Suu Kyi’s elected administration, Western economic boycotts and sanctions have harmed both big corporations and regular people, many of whose lives have already been disturbed by civil conflict and the coronavirus outbreak.
The issuance of new, larger denomination money is commonly associated with the risk of inflation, albeit this is not always true. Older Myanmar people are especially sensitive to currency changes, recalling the abrupt demonetization of banknotes in 1987 during a previous dictatorship, which reportedly affected 80% of the money in circulation.
The action sparked anger, which led to a failed insurrection against military rule in 1988, but it also resulted in the formation of Suu Kyi’s National League for Democracy party.
According to a report on state-run MRTV television, the 20,000-kyat notes will be produced in restricted quantities starting on July 31.
According to state media reports, the replacement banknotes will only be available by exchanging damaged lesser denomination notes of the same value at central bank locations in the capital Naypyitaw, as well as Yangon and Mandalay.
The notes feature an albino elephant on the front and two bridges, a symbol of infrastructural development, on the back. Albino elephants are commonly referred to as white elephants, which are considered lucky in many Southeast Asian civilizations.
The banknotes celebrate the first birthday of one of these elephants as well as the construction of a massive Buddha monument in Naypyitaw.
