The U.S. dollar depreciation has impeded the implementation of infrastructure projects by non-governmental organizations in Myanmar.
“Usually it would cost us around 1.6 million kyat, which had normally been about $US1600, to dig a well, but now this will work out at around $US2000,” said Hpone Win, head of local sustainable development nonprofit Mingalar Myanmar, as quoted by the Democratic Voice of Burma.
The NGO official added: “So we have to reduce the amount of wells and lakes we are digging. For example, we may only be able to dig wells in about eight or nine villages from an initial plan of 10 villages.”
The exchange rate between the U.S. dollar and Burmese kyat reached a low of 780 kyat to USD1 early this month. Burmese businessmen expect the U.S. dollar to further weaken in the months ahead, the Democratic Voice of Burma reports.