David O. Dapice, Malcolm McPherson, Michael J. Montesano, Thomas J. Vallely, and Ben Wilkinson, June 2011
The exchange rate is one of the most important tools in economic development. In Myanmar (Burma), an overvalued exchange rate is currently undermining economic activity involving all tradable goods. If this situation persists, the country’s industrial base will shrink, investors will be discouraged, unemployment will rise, poverty will deepen, more people will leave the country, the divide between rich and poor will grow, and national strength and the people’s prosperity will be diminished if not destroyed. Myanmar’s overvalued exchange rate is inconsistent with the development experience throughout Asia since 1945.