(Reuters) – Myanmar’s currency has lost more than 60% of its value since the beginning of September in a collapse that has driven up food and fuel prices in an economy that has tanked since a military coup eight months ago.

Richard Horsey of the International Crisis Group stated that the Generals will be rattled by this as they view the kyat rate, which is a broad barometer for the economy and therefore, reflect their own behavior.

The Central Bank of Myanmar attempted to tether the kyat 0.8% against its dollar reference rate in August. However, it gave up on September 10 due to increasing pressure.

Some money changers closed their doors due to a shortage of dollars.

The money changer stated on Facebook that “Due to currency price instability at this moment…all Northern Breeze Exchange Service branch are temporarily closed.”

The rate quoted by those still in operation was 2,700 Kyat per Dollar on Tuesday. This is compared with 1,695 back in September and 1,395 on February 1, when Aung San Suu Kyi’s democratically elected government overthrown.

According to a World Bank report, 18% of the world’s economy will be affected by the pandemic. The bank also predicted that Myanmar would experience the greatest contraction in its employment, while the population would become more poor.

As a result of months of demonstrations and strikes against the junta’s regime, the economic crisis is intensifying.

According to a top executive of a Myanmar bank who refused to identify himself, “The more political the situation, the lower the currency rates will be.”

Myanmar has been struggling with coronavirus outbreaks since June. Authorities’ response was hampered by protests from health professionals. While the number of cases reported has fallen from its peak, it is not clear how widespread the epidemic really was.

Stay at home orders in some townships have been withdrawn, but are still in effect in some areas.

People waited for months to cash out their savings. Some bought gold. But a Yangon jewel merchant stated that there were many people who wanted to return their gold.

Although the central bank did not give any reason for abandoning its managed floating strategy, analysts think its foreign currency reserves are seriously low.

Although officials from the central bank declined to comment, World Bank data showed that there was only $7.67 trillion in foreign currency reserves by 2020.

The central bank continued to spend $65 million on kyat purchases between September 13th and 27 at rates of 1,750 to 1,755 dollars.

In a weak currency market, the bank executive stated that central bank efforts were not able to make a difference.

According to the United Nations Office for the Coordination of Humanitarian Affairs, around 3 million people are now in need of humanitarian assistance in Myanmar due to the current economic crisis. That’s an increase of nearly 40% from the one million who were affected by the coup.

The price of a 48-kilogram bag rice is 48,000 Kyat. This represents a 40% increase in the cost. Meanwhile, gasoline prices are almost doubled at 1,445 Kyat per Liter.

Businesses are also affected by the crisis, especially those that need to import raw material. Yangon plastic bag producer said that sales were down 30% after he had to increase his prices.

Zaw in Yangon, who wanted to be anonymous, said that the per capita gross national product of Myanmar was only $1,400.

“People will be poorer.”