Myanmar's Currency Crisis Spirals Amid Civil War

Myanmar's currency, the kyat, has plummeted in value, pushing up prices for essentials such as food and medicine. The instability has led to rising transportation costs and border trade disruptions, worsening the economic crisis caused by civil war and junta policies.

The rapid depreciation of Myanmar's kyat is escalating prices of essentials, crippling ordinary households amid ongoing civil war and economic turmoil in the country. The currency's value dropped to 7,500 per dollar on the black market before recovering to around 6,000. In contrast, the central bank's official rate was 2,100 on Tuesday.

Residents report soaring costs for groceries and medicine, while the central bank remains unresponsive. Civil war and economic instability, compounded by Western sanctions and an exodus of investors, have pushed Myanmar into deeper financial troubles. The World Bank projects a stagnation in economic growth at 1% for the fiscal year.

The junta's attempts to stabilize the currency through arrests of traders and dealers have failed to stem the slide. Rising transportation costs due to fuel shortages and limited border trade have driven retail prices even higher. The insurgent National Unity Government criticizes the military for lacking effective economic strategies.

(With inputs from agencies.)