The release of new K1000 banknotes bearing the portrait of Bogyoke Aung San on January 7 is not expected to impact inflation, economists and banking experts said in response to market concerns.

When the Central Bank circulates new notes into the economy, it will retrieve the equivalent amount of old notes to avoid inflation, said U Than Lwin, a former vice governor of the Central Bank of Myanmar.

This is in accordance with monetary rules and regulations, he said.

U Than Lwin went on to address rumours that the printing costs for the new K1,000 notes are higher than their value. “It is not true. The CBM would not print new currency if the cost of printing a new K1,000 note is more than K1,000,” he said.

He noted that the new K1,000 can easily be mistaken for K10,000 though, as the colour scheme and design of both notes are similar, but said it is a “good idea” for Myanmar to have a leader on its bank notes.

“No country in the world today prints special symbols that are not related to important persons in their history on their currency notes. It’s a great idea to have those who showed loyalty to the country on the notes,” U Than Lwin said.

U Kyaw Soe Lin, Technical Officer at Yoma Bank, said despite the new bank notes, people should change their mindsets and adopt cashless payments as the way forward.  

“Cashless payments have many advantages like providing convenience and lowering costs. People need to change their mindsets about it,” he said. – Translated