Myanmar Spring Chronicle – August 05 Scenes
MoeMaKa, August 06, 2023
In a world where extreme weather conditions such as extreme heat, cold, drought, and excessive rainfall occur as a result of global warming, Myanmar is one of the most vulnerable countries. Every year in this monsoon season, Myanmar is becoming one of the countries that suffers badly from the effects of storms and floods. In addition to global climate change, due to deforestation, and the search for gold and other minerals in the rivers, the rivers have become shallow, and there are many areas that are affected by floods every rainy season. In Kachin State and Sagaing Division, due to gold and jade mining, natural rivers are badly damaged, and floods and landslides occur frequently during the rainy season.
In this year’s rainy season, Karen State, Kachin State, and Mon State have recently experienced continuous rains and flooding of roads and low-lying areas of the city.
The highway connecting Yangon and Thaton from Bilin Township in Mon State is flooding, as are the roads in Myawaddy and Kawkareik in Karen State, causing delays in the transportation of goods and travel. There are also armed clashes in those areas. Similarly, areas like Hpakant in Kachin State are affected by floods and armed conflict almost every year. Rakhine State was also recently hit by Cyclone Mocha and is still suffering from major damage. Since 2017, Rakhine State has been experiencing armed conflict every two years. While the people of Rakhine are suffering from natural disasters, they are also suffering from the effects of the armed conflict and the 4-cut strategy. At this time, the people living in areas of armed conflict are suffering the impacts of both natural disasters and armed conflict at the same time. These areas are also facing difficulties receiving aid due to the restrictions imposed by the military junta.
Another topic for today is the consequences of the financial sanctions of the United States, and it is reported in the news that Singapore’s UOB Bank will no longer allow businesses from Myanmar to open bank accounts. Last month, MAI was notified of the closure of its bank accounts opened in Singapore, but now it has been reported that other businesses, such as import and export companies, have been notified of strict restrictions on opening accounts and the inability to provide services related to the account.
Recently, the United States imposed sanctions on the Myanma Foreign Trade Bank (MFTB) and the Myanma International Commerce Bank (MICB), and the sanctions of the United States Treasury Department affect both Myanmar and foreign banks working with these banks. Because of these factors, Singapore’s UOB Bank may have restricted business companies’ accounts in Myanmar.
These financial sanctions and restrictions will make it difficult for the military council to obtain foreign currency from the sale of resources, import jet fuel, and purchase military weapons, and it may face a situation in which the revenue from resources cannot be quickly acquired. On the other hand, imports of gasoline, diesel, and other products used in Myanmar through Singapore will be impacted. Domestically, the military council’s foreign currency policies and orders are frequently changed, and it is trying to reduce the use of foreign currency due to the increasing demand. Also, the Myanmar kyat is rapidly depreciating, and the public is feeling the effects of high commodity prices.
International economic sanctions may make it difficult for the military council to obtain foreign currency and purchase necessary military weapons and jet fuel. At the same time, domestic foreign exchange rates and commodity prices will rise, and the public will be more affected by high commodity prices.