" Junta says rumour-mongers try to

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Reply-To: south@xxxxxxxxxxxxxxxxxx (SAFHR KATHMANDU)
Subject: " Junta says rumour-mongers try to damage Burma economy"

The Kathnandu Post, Kathmandu, July 17 1997

Junta says rumour-mongers try to damage Burma's economy

Rangoon, July 16(AFP): Burma's junta has accused of unscruplous
rumour-mongers of seeking to damage the country's economy ahead of entry
into the Association of South East Asian Nations(ASEAN), the official
press reported Wednesday.

Lieutenant General Khin Nyunt, the powerful military intelligence chief,
denied rumours the government was planning to seized hard currency
deposits in banks or withdraw 500 and 200 Kyats notes and replace them with
1,000 Kyats notes.

Responding  to widespread speculation of a change in the country's
monetary system once Burma's joins ASEAN later this month, Khin Nyunt also
denied reports that foreign exchange certificates (FECs) would withdrawn
from circulation.

The English-language  daily New Light of Myanmar quoted him as blaming " a
group of unscruplous elements" for spreading rumours about the
government's monetary policies.

"Rumours about financial and economic matters afloat today are totally
untrue and this has been concocted by destructive elements," Khin Nyunt
said.

The rumour-mongers were taking advantage of the public's lack of
knowledge about ASEAN to spread false information in an attempt to deprive
Burma of the economic benefits  it would enjoy once it joined the grouping,
he held. 

Burma has a two-tier exchange system. The official rate of exchange is
around six Kyats to the US dollar. The prevailing markets rate plunged last
week to an all-time low of 240 Kyats to the dollar.

ASEAN groups Burnei, Indonesia, Malaysia, The Phillippines, SIngapore,
Thailand and Vietnam.