|
Myanmar faces 'very difficult reforms,' ADB says
Myanmar must implement difficult reforms as it faces a surge of investment that threatens to destabilize its economy, the Asian Development Bank said Monday.
This month's devaluation of Myanmar's currency is a "very positive step" but the country has a "very long way to go" after decades of political and economic isolation, ADB Managing Director Rajat Nag said.
Myanmar weakened its currency to 818 kyat per U.S. dollar from a previous fixed rate of 6.4 kyat, bringing it into line with the unofficial rate. Myanmar said supply and demand combined with central bank intervention would determine the value of the currency.
"The important thing in Myanmar is to keep the macroeconomic stability because as the country opens up, there will be a significant increase in investment and trade," Nag told reporters. "We should have no illusions that this is going to be a very difficult process of reforms."
Investors are eager to enter the Southeast Asian country as relations warm between Myanmar and the West. Western leaders have said they may suspend economic sanctions as Myanmar adopts democratic reforms.
The ADB expects Myanmar's economy to grow 6 percent this year and 6.3 percent in 2013.
"Lifting the sanctions will enable the international organizations, such as us, to get re-engaged," Nag said. "The challenges are huge and have to be addressed on a very broad front. But it has to start with engagement of the international community."
bloomberg
|
