Myanmar’s economy is facing further destabilization as the country’s currency rapidly depreciates amidst ongoing armed conflict following the 2021 coup. In a recent crackdown, authorities have arrested 11 people, including a Japanese executive, for selling rice at prices higher than allowed levels. The charges relate to the sale of rice at prices up to 70% higher than what is considered acceptable by the authorities.
The arrest of Hiroshi Kasamatsu, a director at supermarket operator Aeon Orange, has caused tension with Tokyo. The authorities suspect him and three Myanmar nationals of price gouging with the aim to create economic chaos. The conflict in Myanmar, which began when the military seized power from the elected civilian government led by Aung San Suu Kyi, has led to widespread protests and armed resistance. Over three million people have been displaced from their homes.
In an effort to stabilize the rapidly depreciating currency, Myanmar has arrested 35 people involved in the gold and foreign exchange markets. However, the mismatch between official foreign exchange rates and black market rates continues to pose challenges for rice traders. The ongoing conflict has disrupted the planting, harvesting, and transport of rice, leading to a more than doubling of prices in recent months. Despite state media blaming the El Nino weather phenomenon and market hoarders, traders argue that selling at the officially sanctioned price would result in operating at a loss.
Japan’s Chief Cabinet Secretary, Yoshimasa Hayashi, has confirmed that police in Yangon are questioning a Japanese national and the government is urging local authorities for his early release while providing support through his employer. The Japanese government is committed to taking appropriate steps in response to the situation in Myanmar.
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