The kyat ( or ; Burmese: ကျပ် [tɕɛʔ] or [tɕaʔ]; ISO 4217 code MMK) is the currency of Myanmar (Burma). The typical notation for the kyat is "K" (singular) and "Ks." (plural), placed before the numerals followed by "/-". Amounts less than K. 1/- are typically denoted with the number of pyas following "-/" (e.g. -/50 denotes half a kyat).
The term kyat derives from the Burmese unit kyattha (Burmese: ကျပ်သား), equal to about 16 grams (1⁄2 troy oz) of silver.
Current MMK exchange rates
From 2001 to 2012, the official exchange rate varied between Ks. 5/75 and Ks. 6/70 per US dollar (Ks. 8/20 to Ks. 7/- per euro). However, the street rate (black market rate), which more accurately took into account the standing of the national economy, has varied from Ks. 750/- to Ks. 1,335/- per USD (Ks. 985/- to Ks. 1,475/- per EUR). The black market exchange rates (USD to MMK) tend todecrease during the peak of the tourist season in Myanmar (December to January). During the 2003 Myanmar banking crisis, the kyat's black market rate appreciated when distrust in kyat-deposited banks increased demand for kyat banknotes. At its peak, the kyat traded for as high as Ks. 850/- per USD.
On 2 April 2012, the Central Bank of Myanmar announced that the value of the kyat against the US dollar would float, setting an initial rate of Ks.818/- per US dollar.
On 20 March 2013, the Finance Ministry announced that it would abolish Foreign Exchange Certificates (FEC), which were mandatory for tourists to buy at least US$200 worth of until 2003, a measure used to discourage visitors from using the forex black market.
More than a year after a coup d'état caused the overthrow of the elected government, capital flight from Myanmar and inflation accelerated, causing the value of the kyat to plummet to 3500 kyats per USD in the informal market as of August 2022. By May 2024, the exchange rate had increased to 5000/- per USD on the black market, with the junta reportedly abandoning the fixed exchange rate of 2100.
History
First kyat, 1852–1889
The kyat was a denomination of both silver and gold coinages in Burma until 1889. It was divided into 16 pe, each of 4 pya, with the mu and mat worth 2 and 4 pe, respectively. Nominally, 16 silver kyats equal 1 gold kyat. The silver kyat was equivalent to the Indian rupee, which replaced the kyat after Burma was conquered by the British.
Second Kyat, 1943–1945
When the Japanese occupied Burma in 1942, they introduced a currency based on the rupee. This was later replaced by banknotes in all kyat denominations. This kyat was subdivided into 100 cents. The currency became worthless at the end of the war when the Burmese rupee was reintroduced in 1945.
Third kyat, 1952–present
The present kyat was introduced on 1 July 1952. It replaced the rupee at par. Decimalisation also took place, with the kyat subdivided into 100 pyas.
Coins
First kyat
During the Konbaung dynasty, Mindon Min, the second to last King of Burma, established the Royal Mint in Mandalay (Central Burma). The dies were made in Paris. Silver coins were minted in denominations of 1 pe, 1 mu (2 pe), 1 mat (4 pe), 5 mu (8 pe) and 1 kyat, with gold 1 pe and 1 mu. The obverses bore the Royal Peacock Seal, from which the coins got their name. The reverse contained the denomination and mint date (in the Burmese era, which starts from AD 638). In the 1860s and 1870s, lead coins were issued for 1⁄8 and 1⁄4 pya, with copper, brass, tin and iron 1⁄4 pe (1 pya) and copper 2 pya. Further gold coins were issued in 1866 for 1 pe, 2+1⁄2 mu and 1 kyat, with 5 mu issued in 1878.
Second kyat
No coins were issued for this currency.
Third kyat
In 1952, coins were introduced in denominations of 1, 5, 10, 25 and 50 pyas and K 1/-. The new coins bore the same obverse figure of the Chinthe from the Second kyat coins and the same reverse design, with the value of the coin in Burmese script and numerals surrounded by Burmese flower designs.
In 1966, all coins were redesigned to feature Aung San on the obverse and were all changed in composition to aluminium. Furthermore, the coins were slightly reduced in size. However, they retained the same shapes and overall appearance of the previous series of coins. These were circulated until being discontinued in 1983.
In 1983, a new series of coins was issued in bronze or brass 5, 10, 25, 50 pyas and cupro-nickel 1 kyat. Although the 25 pyas were initially round, it was later redesigned as hexagonal due to size and appearance confusions with the 10 and 50 pyas. These would be the last official series of coins to be issued under the name of "Burma."
1 pya coins were last minted in 1966, with the 5 and 25 pyas last minted in 1987 and the 10 and 50 pyas in 1991.
In 1999, a new series of coins was issued in denominations of bronze K 1/-, brass Ks. 5/- and Ks. 10/-, and cupro-nickel Ks. 50/- and Ks. 100/- under the name "Central Bank of Myanmar." These are also the first coins of Burma to depict Latin letters. These coins were intended for vendors and services as an alternative to large amounts of worn out, low denomination banknotes. High inflation has since pushed these coins out of circulation.
In late 2008, the Myanmar government announced that new Ks. 50/- and Ks. 100/- coins would be issued. According to newspaper articles, the new Ks. 50/- coin would be made of copper, with the usual Burmese lion on the obverse and the Lotus Fountain from Naypyidaw on the reverse. The Ks.100/- coin would be of cupro-nickel and depict the Burmese lion on the obverse and the value on the reverse.
Banknotes
First kyat
No banknotes were issued for this currency.
Second kyat
The Burma State Bank issued notes for K 1/-, Ks. 5/-, Ks. 10/- and Ks. 100/- in 1944, followed by a further issue of Ks. 100/- notes in 1945.
Third kyat
In 1952, the Union Bank of Burma formed a currency board which took over control of the issuing of currency and a more important change to the currency was the introduction of the decimal system in which 1 kyat was decimalised into 100 pyas.
On 12 February 1958, the Union Bank of Burma introduced the first kyat notes, in denominations of K 1/-, Ks. 5/-, Ks. 10/- and Ks. 100/-. These were very similar in design to the last series of rupee notes, issued earlier. Later on, 21 August 1958, Ks. 20/- and Ks. 50/- notes were introduced. The Ks. 50/- and Ks. 100/- notes were demonetised on 15 May 1964. This was the first of several demonetisations, ostensibly carried out with the aim of fighting black marketeering.
Ever since the Third Kyat was introduced, the Burmese currency has had no indication of the date on which the note came into circulation, nor the signature of the issuing authority.
1965–1971
The People's Bank of Burma took over note production in 1965 with an issue of K 1/-, Ks. 5/-, Ks. 10/- and Ks. 20/- notes.
1972–1988
In 1972, the Union of Burma Bank took over note issuance, with notes introduced between 1972 and 1979 for K 1/-, Ks. 5/-, Ks. 10/-, Ks. 25/-, Ks. 50/- and Ks. 100/-. The notes were printed by the Security Printing Works in Wazi, Upper Burma (established c. 1972) under the technical direction of German printing firm Giesecke & Devrient.
On 3 November 1985, the Ks. 50/-, and Ks. 100/- notes were demonetized without warning, though the public was allowed to exchange limited amounts of these old notes for new ones. All other denominations then in circulation remained legal tender. On 10 November 1985, Ks. 75/- notes were introduced, the odd denomination possibly chosen because of dictator general Ne Win's predilection for numerology; the Ks. 75/- note was supposedly introduced to commemorate his 75th birthday. It was followed by the introduction of Ks. 15/- and Ks. 35/- notes on 1 August 1986.
Only two years later, on 5 September 1987, the government demonetised the Ks. 25/-, Ks. 35/-, and Ks. 75/- notes without warning or compensation, rendering some 75% of the country's currency worthless and eliminating the savings of millions of Burmese people. On 22 September 1987, banknotes for Ks. 45/- and Ks. 90/- were introduced, both of which incorporated Ne Win's favourite number, nine. The resulting economic disturbances led to serious riots and eventually a coup d'état in 1988 by General Saw Maung.
Banknotes of K -/50, K 1/- and Ks. 5/- are rare. Most daily transactions are rounded up to the nearest Ks.10/-.
1989–present
Following the change of the country's name to Myanmar on 20 June 1989, new notes were issued, returning to more practical denominations. Old notes were not demonetised, but simply allowed to fall into disuse through inflation as well as wear and tear. On 1 March 1990, K 1/- notes were issued, followed by Ks.200/- notes on 27 March 1990. On 27 March 1994, notes for K -/50 (50 pyas), Ks. 20/-, Ks. 50/-, Ks. 100/-, and Ks. 500/- were issued, followed on 1 May 1995, by new Ks. 5/- and Ks. 10/- notes. Ks. 1,000/- notes were introduced in November 1998.
In 2003, as public trust eroded during the 2003 Myanmar banking crisis, rumours of another pending demonetisation swept through the country, which the junta denied. The rumours did not materialize.
In 2004, the sizes of the Ks. 200/-, Ks. 500/-, and Ks. 1,000/- notes were reduced to make all Burmese banknotes uniform in size. Larger notes were allowed to remain in circulation. K -/50, K 1/-, Ks. 5/-, Ks. 10/- and Ks. 20/- banknotes are now rarely seen, because of their low value.
On 1 October 2009, Ks. 5,000/- banknotes were issued measuring 150 x 70 mm, with images of a white elephant and the Pyidaungsu Hluttaw. This new denomination was five times larger than the previous largest denomination. Some welcomed a higher value note that reduced the number of banknotes needed for transaction. Other responses suggested widespread fear that the banknote would simply fuel inflation. This fear may have been supported by a jump in the black market exchange rates following the public announcement of the banknote.
On 9 June 2012, the Central Bank announced that Ks. 10,000/- notes would be introduced into circulation to better facilitate financial transactions in a largely cash-oriented economy. They were issued on 15 June 2012.
On 1 October 2014, the Central Bank introduced new Ks. 5,000/- banknotes with additional security features to prevent counterfeiting. The revised notes are varnished and have enhanced printing, watermarks, and a security thread. The new notes remained the same size, colour and design as the 2009 issue, which continues to be used. The new notes followed recent incidents of counterfeit Ks. 5,000/- and Ks. 10,000/- banknotes, including a 12 September 2014 seizure of Ks. 10,000/- notes and a printer allegedly used to make them.
In 2019, the Central Bank of Myanmar issued a new series of banknotes that feature a portrait of its national hero Aung San after longstanding calls to redesign the kyat. The first denomination issued for this new series was the Ks. 1,000/- banknote, which was issued into circulation on 4 January 2020, followed by the Ks. 500/- banknote on 19 July 2020.
In July 2023, a new Ks. 20,000/- banknote was announced amidst economic instability from the aftermath of the 2021 Myanmar coup d'état. The reasoning was not explained, but was likely to commemorate the birth of a white elephant and the construction of the Maravijaya Buddha statue in Naypyidaw. The banknote saw limited circulation at only select central bank branches.
Foreign exchange certificates
In 1993, Myanmar began issuing foreign exchange certificates (FEC) denominated in US dollars in denominations of $1, $5, $10, and $20. These were exchanged at a parity ratio with and were valued separately from the regular kyat. Conversion of foreign currency into kyats was made illegal as exchange rates were set artificially high. During much of this period, two valuations of the Myanmar kyat emerged: the official rate, which averaged around Ks. 6/- = US$1, and the black market rate which averaged tens of times higher. Foreign visitors to Myanmar could only transact currency in FEC's or could only obtain kyats at the artificially high official rates. Illegal peddlers often had to be sought out to exchange currency.