Myanmar's central bank to disburse $100m for fuel importation amid shortage: Video
Myanmar's junta-controlled central bank has said it will release $100 million to help struggling importers purchase fuel and oil.
This comes in response to importers' inability to pay for fuel shipments due to the significant devaluation of the kyat against the dollar.
Recently, residents in Yangon queued overnight at petrol stations, hoping to secure fuel for their vehicles. The shortage also affects businesses and hospitals that rely on generators during frequent power outages in the city of eight million.
The central bank's statement on August 14 confirmed the $100 million allocation for the fuel oil sector in the foreign currency market.
"The Central Bank of Myanmar has arranged to provide US$100 million towards the fuel oil sector in the foreign currency market," it said in a statement as reported by AFP.
This move follows a previous injection of over $16 million into the foreign exchange market last month to curb currency devaluation. Inflation is projected to be around 15.5 percent for the fiscal year ending next March, according to the Asian Development Bank.
The economic downturn has led to soaring prices for essentials like cooking oil, rice, and other staples. Last December, the junta cracked down on fuel hoarding, threatening jail time for anyone found with more than 180 litres of petrol without a license.
Myanmar's economy has been struggling since the military coup in 2021. The coup also sparked massive pro-democracy protests, which were met with a harsh military crackdown.
