Myanmar 20240611: Fractious, Beleaguered, Tenacious

Mekong Memo Myanmar Weekly: Business, politics, finance, trade & legal news.

Jun 11, 2024

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Headlines:

Kyat Crushed by Currency Printing

Trust Deficit Worsens With Rising Informer Activity

The Devastating Cost of Fighting the Junta

Crackdown on Informal Currency Exchanges

Russia to Build Nuclear Plant in Myanmar

Junta Courts Chinese Tourism to Boost Economy

China's Enduring Support for Myanmar's Military

UNDP's Community-First Approach to Rebuild

New Aid Paradigm Focused on Local Governance

Conflict Timber Fuels Military Resilience

Kyat Crushed by Currency Printing

The junta has printed a staggering 30 trillion kyats since the 2021 coup, causing a severe currency devaluation, according to the National Unity Government and economist Sean Turnell. This love affair with the printing press has sent the kyat's value plummeting and inflation soaring, with gold prices hitting record highs. The junta's skyrocketing military spending is further straining the economy. Businesses are being asked to use barter systems to manage the crisis, while the junta targets money changers and gold dealers.

Trust Deficit Worsens With Rising Informer Activity

The military regime is relying heavily on informers to maintain control, creating a pervasive environment of distrust. The country, historically plagued by a high informer-to-citizen ratio, has nonetheless seen increased surveillance post-2021 coup. This has exacerbated social fragmentation, with informers facing targeted retaliation from the resistance. Trust in government and among communities remains critically low, deepening the social and political crisis.

The Devastating Cost of Fighting the Junta

The Chin National Army and local armed civilian groups have made unprecedented gains against the military junta, particularly in Chin state. This conflict has led to severe human rights abuses, including the tragic death of 17-year-old Lalnunpuii and her brother, who were tortured and killed by the military. Despite these hardships, local resistance remains resolute, backed by ordinary citizens determined to push back against military rule and reclaim their democracy.

Crackdown on Informal Currency Exchanges

The Central Bank is doubling down on efforts to curb illegal currency exchange activities, arresting 12 individuals involved in informal exchanges and freezing 75 associated bank and online payment accounts. The crackdown is in aid of attempts to regulate foreign currency exchanges and mitigate the awkward discrepancies between official and black market rates. The crackdown has disrupted the availability of US dollars, making things much more difficult for those needing foreign currency for travel and medical treatment.

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