Experts warns against rumors on possible money inflation from new currency

YANGON, Oct. 6

Monetary experts in Myanmar Tuesday warned against rumors about possible monetary inflation from recent introduction of a new denomination of 5,000-Kyats currency, alerting the people not to follow the rumors to affect the rise of commodity prices.

    "The putting into circulation of the new higher-value currency banknotes would not bring about inflation but to facilitate trading transaction in higher value," the experts said in a bid to ease the public worry.

    The experts urged people to trade with awareness and keep normalcy to prevent the commodity prices from rising.

    The experts cited the lesson that unscrupulous businessmen raised sharply the prices of construction materials after storm last year, creating inflation in the post-Nargis period.

    According to market survey, daily trading is running normally after the introduction of the new currency notes.

    The Central Bank of Myanmar started on last Friday to put a new denomination of currency notes of 5,000-Kyats into circulation, which is five times higher in face value than that of 1,000 Kyats last introduced in November 1998, adding to the existing currencies in use in the public.

    The bank authorities' move is said to facilitate high-value transactions as trade volume of the country grows along with the momentum of its economic growth and boost its flow of the existing currencies.

    Myanmar is a country with its people using cash more than cheques.