Myanmar Spring Chronicle – August 27 Highlights
(MoeMaKa, August 28, 2025)
Import Restrictions and Spiraling Prices
In recent weeks, Myanmar’s military junta has issued a series of new rules and restrictions on foreign imports.
The most dramatic move was the sudden suspension of truckloads of Thai goods crossing at Myawaddy Border Trade Post No. 2—the busiest land trade route between Thailand and Myanmar. These were not contraband shipments, but goods that had already cleared customs and duties. Traders on both sides were caught off guard, suffering unexpected losses.
Thai business owners, the Thai government, and junta officials are reportedly in talks, but no resolution has yet been announced.
Analysts believe the junta’s aim is partly to cut revenue streams for armed resistance groups that tax goods along the Myawaddy–Hpa-an–Yangon corridor. However, evidence suggests the strategy is also tied to a broader push to reduce foreign currency outflows.
Shortly after the border suspension, restrictions also hit air cargo imports, forcing some air freight companies to halt operations. Even shipments allowed via the Ranong–Kawthaung sea trade route now face bureaucratic delays and permit obstacles designed to limit import volumes.
Currency Crisis Behind the Policy
These restrictions appear driven by the junta’s urgent need to conserve foreign currency reserves.
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War costs are soaring:
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Ammunition imports
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Aviation fuel for daily airstrikes
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Aircraft maintenance
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Foreign currency demand is intensifying, pushing the kyat into freefall.
Since the 2021 coup, the kyat has plummeted from around 1,300 per USD to today’s 4,300–4,400 per USD.
Like previous military regimes, the junta is resorting to crude measures: restricting imports, enforcing austerity, and cutting consumption—attempts to stem currency collapse, though historically ineffective.
Domestic Impact
The fallout is severe:
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Myanmar already suffers from unstable supply chains due to the war.
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Now, restrictions on imports are fueling further price spikes.
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Goods affected include not only construction materials (like cement) but also daily necessities—foodstuffs, household items, and essential medicines.
Ordinary people, already burdened by inflation since Operation 1027, now face even sharper price increases.
Meanwhile, domestic manufacturing is shrinking due to:
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Power shortages
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Worker shortages
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Lack of raw materials
Production of clothing, soap, toothpaste, soft drinks, and snacks—all once locally available—is steadily declining.
The Bigger Picture
Since mid-2025, the junta has slightly shifted battlefield momentum, launching more offensives. But these operations come at high financial cost. The new trade restrictions reflect a strategy to conserve foreign exchange for war expenses.
Ultimately, the burden will fall hardest on Myanmar’s struggling majority—ordinary families already enduring hardship, now squeezed further by inflation and scarcity.
👉 In short: The junta’s import clampdowns serve both military and economic ends—funding war while choking the economy—leaving civilians to pay the price.