Myanmar unveils new higher denomination bank note

Myanmar unveils new higher denomination bank note

Yangon, Myanmar -- Myanmar announced Thursday it will soon introduce a
5,000-kyat bank note, the country's highest-denominatio n currency.

State radio and television reported that the Central Bank of Myanmar will
release the note Oct. 1.

Existing notes and coins will remain legal tender.

Five thousand kyat is worth about $4.70 at the free market - or black
market - rate of exchange used for most commercial transactions. It is
worth a bit more than $800 at the nominal official rate of exchange.

The last time a new denomination was introduced was in 1998 with the
1,000-kyat note. Because it is worth only about $0.94 at the free market
exchange rate, even minor business transactions require large wads of
money.

Rumors of the introduction of a 5,000-kyat note had been circulating since
2003, but the government repeatedly described them as speculation.

Currency is a sensitive subject in Myanmar, where demonetization of some
notes in 1987 sparked protests that turned into vast pro-democracy
demonstrations that were quelled with military force.

"There will be some panic in the market" over issuing the new bank note, a
banker said on condition of anonymity because of the sensitivity of the
subject. "The price of black market dollars will go up and so will the
price of gold. However, the introduction of such a big denomination note
will help our banking transactions, as there will be a lower volume of
cash."

He added that the negative impact would not last long.

The new bank note will be red and have an elephant as its main motif.