|Mountain of Burmese Kyats.|
|Carry Trade Explained?|
They borrow huge amount of money from their home banks at lower rates and deposit into Burmese banks at higher rates. And they have been pocketing the interest rate differential from these money shifting trades widely known as the Carry Trade.
|Exploding carry trades due to near-zero|
US interest rates.
|A Carry Trade involving selling US$ and buying AU$.|
But Maung Maung Win, then the vice-chairman of Burma’s central bank and now the director-general of the National Budget Department, said at the Financial Services Workshop held in last September that the inflation was still around 5% and the interest rate should not be lowered.