Myanmar currency trade turns to FB groups

As Myanmar's economic slump deepens after February's military coup and parts of its financial system freeze up, many in the strife-torn country are turning to online groups to bypass official channels to trade currencies.

The fragility of the financial system was further exposed this week when the kyat currency sank to new lows after the central bank gave up on attempts to prop it up. Many licensed money exchanges and gold shops shut their doors in the turmoil that followed.

The online groups, which run mainly on Facebook, have become a way for buyers and sellers of currencies to connect, often relying on trust when arranging physical exchanges of notes.

"I posted to sell some old notes yesterday in the group," said May Lay, a Yangon resident, referring to what she said was the sale of about $190 into kyat on a Facebook group.

"I lost my job and have had no income recently. Life is difficult with a one-year-old child," she said, noting how her household spending on food had doubled.

In the immediate months after the Feb. 1 coup, long lines of people queued up to withdraw cash from banks, though recently kyat savings have taken an ever bigger hit with the currency losing 60% of its value against the dollar in September.

Speaking after the World Bank warned this week the economy could slump 18% this year, the ruling military council’s spokesman Zaw Min Tun said on Thursday the central bank had been unable to meet local demand for dollars.

One of the biggest of the groups set up on Facebook called “Dollar Buyer Seller Direct” had about 170,000 members, with the group’s administrator warning users to be careful before making a deal.