The strengthening of the kyat against the US dollar and Chinese yuan has begun to have a negative impact on Myanmar’s beans and pulses, merchants in Mandalay say

The strengthening of the kyat against the US dollar and Chinese yuan has begun to have a negative impact on Myanmar’s beans and pulses, merchants in Mandalay say.

The rise in the kyats value of the past several weeks means Myanmar’s goods have become more expensive for foreign buyers while at the same time earning local producers less in terms of kyat.

The prices local beans and pulses have declined by anywhere from K2,000 to K10,000 per three-basket bag, a local unit of measure, and local sellers are especially feeling the effects of the yuan’s weakening, said U Moe, a bean merchant at Mandalay wholesale centre.

The exchange rate for 1 yuan has fallen from K206.39 on February 7 to just K199.83 on March 8, a decline of 3.17 percent.

“We are losing about K3 million for every K100 million in sales,” U Moe said.

The price of black gram, locally called matpe, has declined about K10,000 from K90,000 to K80,000, while the green gram has decline K6,000 from K119,000 to K113,000, and green pea about K8,000 from K65,000 to K57,000.

As of Sunday, the kyat was trading at K1,385.45 against the US dollar, up from K1,438.969 just last February 7.