Import Controls, Natural Resource Booms, and Extraordinary Real Exchange Rate Appreciation in 2007–2011

  • Koji KuboEmail author


Myanmar experienced unprecedented real exchange rate appreciation in 2007–2011, while the country had two natural resource booms, one of natural gas and the other of precious stones, specifically jade. In the face of exchange restrictions, these two commodities might have affected the unofficial market rate differently. A qualitative examination of available data reveals that natural gas export revenues did not have direct impacts on the unofficial market rate, whereas jade exports were a primary cause of its extraordinary appreciation. Furthermore, tight import controls exacerbated the appreciation by blocking outlets for large inflows of export revenues in the unofficial forex market. While bringing in exchange rate instability temporarily, the relaxation of exchange restrictions since 2011 is expected to restore the self-stabilizing feature of exchange rates.


Natural resource boom Real exchange rate Currency appreciation Myanmar 


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© IDE-JETRO 2018

Authors and Affiliations

  1. 1.Institute of Developing Economies, Japan External Trade Organization (IDE-JETRO)ChibaJapan

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