The Myanmar Kyat is the official currency unit of Myanmar. Although the Kyat is subdivided into 100 pyas, pya coins are limited; banknotes of up to 1,000 Kyat are mainly used. Though the official exchange rate has remained at 7 Kyats = 1 US Dollar, the Kyat is known for its widely variable rate, which can go as high as 1,000 Kyats per USD.
Economy
The economy of Myanmar consists mostly of its production and services sectors.
The agricultural sector contributes the largest percentage of the GDP. The next highest sectors are manufacturing and processing, livestock, and fishery.
The agricultural sector is the core of the economy; it accounts for one-third of the GDP and almost half of the foreign exchange earnings.
The largest foreign investments in Myanmar are in manufacturing, hotels and tourism, oil and gas, and mining. Singapore is the main foreign investor.
History
The first Kyat was issued in both gold and silver coins in Burma until 1889. Apparently, 16 silver Kyats were equal to 1 gold Kyat. The value of the silver Kyat was equal to the Indian Rupee, which replaced the Kyat when Burma was conquered by the British.
The Rupee was introduced when Burma was ruled under the Japanese in 1942. In 1943 the Kyat currency was reintroduced to replace the Rupee. Then the Kyat was unvalued after the end of the war, when the Rupee returned to circulation.
The current Kyat used in Myanmar was introduced on July 1, 1952, and remained in circulation until 1989. During that time, old banknotes were withdrawn due to inflation and the reduction of its value.
