Tuesday, August 16, 2011

Dramatic pricing

Burma's currency, the kyat, has something in common with the Swiss Franc: both have risen around 25% against the US dollar over the past year. Last year the Burmese government launched a huge privatisation programme, selling ports, petrol stations, land and state-owned businesses. All assets had to be paid for in kyat. This meant that those generals and businessmen who wanted to participate had to convert their offshore dollar savings, causing the kyat to soar. Property prices are going through the roof: a theatre in central Rangoon has sold for US$63m.


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