The Central Bank of Myanmar (CBM) has printed and distributed new paper currency worth over 3 trillion Myanmar kyats. The new banknotes were sent to state-owned and private banks during the 2018 Transitional Fiscal Year, according to a recently released report from the CBM.
The CBM collected K3.5 trillion worth of old or torn bills in various denominations. After inspecting the currency, they found that over K1 trillion worth of notes were unusable and destroyed them, but the remaining notes were still in good enough condition for continued circulation.
The Central Bank of Myanmar has instructed state-run banks and private banks to exchange the old banknotes with new ones, and not to give old banknotes to customers.
The CBM has been printing and distributing 15 types of banknotes in different values.
During the last month of the six-month 2018 transitional Fiscal Year (April 1, 2018-September 30, 2018) the country saw a 5.94 percent inflation rate while the budget year’s inflation rate was 8.59 percent, exceeding the previous year’s inflation rate. The inflation rate increase, according to the report of CBM, was triggered by natural disasters, difficulties with trade flow, higher basic commodity prices, higher oil prices, and devaluation of local currency.