The military council has issued threatening announcements to take action against market speculators as gold and dollar prices have risen again in the domestic market. Following the International Labour Organization’s (ILO) decision to impose sanctions under Article 33 against the military council, the domestic market has experienced severe impacts. Starting from June 6, large-scale purchases and hoarding of gold and dollars have occurred, leading to steadily increasing prices. By the evening of June 12, the external market closed with pure gold reaching 7.95 million kyats per tical, while the dollar exchange rate rose to around 4,550 Myanmar kyats per US dollar.
Due to these price increases, gold shops have suspended their gold bar and bullion sales, and the renowned Academy Gold business, one of the country’s top gold traders, announced temporary closure of operations starting June 13. The military council’s Central Bank has threatened to monitor social media platforms for activities that might destabilize USDT and foreign currency prices, warning of account closures, SIM card deactivations, and legal action against those involved in such activities. The bank also announced strict enforcement measures against individuals and organizations conducting unauthorized foreign currency trading, buying, and selling.
Under the military council’s rule, dollar income sources have diminished significantly. In August 2024, the exchange rate had previously reached around 7,200 kyats per dollar, prompting the military council to arrest and take action against gold and dollar traders to control the market, which subsequently brought the rate down to around 4,400 kyats per US dollar. The military council continues to maintain strict control over currency markets and threatens severe consequences for those who operate outside their prescribed boundaries, demonstrating their ongoing attempts to maintain economic control through coercive measures rather than addressing underlying economic issues.
