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According to the shadow government formed by supporters of the deposed leader Aung San Suu Kyi, faced with a shortage of taxation and export revenue, the Burmese military government has approached foreign banknote companies to help it print more currency.
The country’s economy is shrinking sharply, the anti-coup camp resists doing business with the military government, and Severe Covid-19 wave Infect.
Ding DunnaiThe Finance Minister of the Parallel National Unity Government, whose members have been in exile or in hiding, stated that the military-controlled Ministry of Planning, Finance and Investment had contacted foreign banknote and security printing companies, including Chinese companies, but was rejected.
“The severe cash shortage is not something they can solve,” he told the Financial Times. “They will do what they have always done: impose a simple, direct and rude situation without considering the public’s cost.”
German banknote company Giesecke+Devrient stop Due to the “continued violent conflict between the army and the people” after the coup, delivery was delivered to Myanmar’s state-owned security printing plant in March. In February, General Min Aung Hlaing, commander-in-chief of the military Overthrown The government of Aung San Suu Kyi, the elected leader of Myanmar.
The Munich-based company said it did not know Myanmar’s attitude towards other foreign security printers.Spokesperson of the military government, among them Describes NUG As a “terrorist organization” and seeking to arrest its members, it did not respond to a request for comment.
However, another person with knowledge of the situation confirmed NUG’s statement that the military government is looking for partners to print banknotes.
“They want to print because they can’t get materials from this German company,” said the person, who asked not to be named, for fear of retaliation from the authorities.
After some international organizations have reduced their presence and investors, since the February 1 coup, the flow of foreign funds into the country has slowed pause Their business.National income has also been hit by the decline in taxes and utility bill payments, and people have hide Expressed opposition to military takeover.
Myanmar has gone through Shortage of physical banknotes Since the coup d’etat, people have rushed to withdraw savings, which has led to banks implementing withdrawal limits. Those looking for alternative assets seek to buy gold or U.S. dollars.
“The economy is expected to shrink significantly this year, and the World Bank expects a GDP growth rate of negative 18% in 2021,” said Khoon Goh, head of Asian research at ANZ Bank in Singapore.
“With the decline in Myanmar’s exports, foreign direct investment and overseas development assistance have fallen sharply, which has caused the Myanmar Kyat to depreciate by 21.7% so far this year,” Khoon said.
Follow John Reid on Twitter: @JohnReedwrites