Price of Burmese currency drops in Indo-Burma border

Khonumthung News: 4 November, 2006

The price of Burmese currency has dropped in the Indo-Burma border after Mizoram customs officials seized over US $ 3 million in Mizoram state, India last week.

The exchange rate of Burmese currency in Zokhuathaar, Indo-burma border trade No. (2) gateway to Burma touched Kyat 28.50 for an Indian Rupee. Before the dollars were seized in Lengpui airport in Mizoram, the exchange rate stood at Kyat 27 per Rupee.

“As the exchange rate is very low, I am not yet ready to transfer money,” said a trader in Mizoram planning to return to Burma .

Seizing the US dollars has reduced assets in the money transfer business as a result losses are being sustained relating to transfer of money to Burma . However, only those who are in urgent need to transfer money in keeping with the demand of business are transferring money at the rate of Kyat 27 per Rupee.

“No one came to transfer money the day before yesterday. I am also afraid to accept money. But a few people came yesterday,” a money transfer agent in Aizawl, capital of Mizoram told Khonumthung News.

Most money transfer agents in Mizoram are from Chin state in Burma .

For security reasons, the traders from Burma prefer to send money to Burma through money transfer agents rather than carrying it with them. The recipients are able to withdraw money from agents in Burma on the basis of the prevailing exchange rate in Mizoram.

Most money transfers agents purchase dollars with India Rupees and convert dollars to Kyats. Mizoram custom officials seized over 3 million dollars from Lengpui airport in Mizoram on Friday.