Myanmar continues to face economic instability and turmoil following the 2021 coup, with the country’s fast-depreciating currency causing significant problems. Authorities have recently arrested 11 people, including a Japanese executive, for selling rice at prices higher than prescribed levels, with charges related to price gouging. The conflict in the country, which has led to armed resistance and displacement of millions, has also disrupted the rice industry, leading to a shortage and significant price hikes.
The arrest of the Japanese executive has caused friction with Tokyo, with Japan urging for his early release and offering support. The conflict has also led to crackdowns on gold and foreign exchange traders in an effort to stabilise the currency. However, the mismatch between official exchange rates and black market rates continues to create challenges for traders.
Despite state media blaming external factors such as the El Nino weather phenomenon and market hoarders for the rice price hikes, traders argue that selling at the officially sanctioned prices would lead to operating at a loss. The ongoing conflict and economic instability in Myanmar highlight the challenges the country continues to face, with efforts to stabilise the economy being derailed by a combination of internal and external factors.
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