Amid armed conflict following the 2021 coup, the rapid depreciation of Myanmar's currency is destabilizing the economy.
Myanmar military authorities have arrested 11 people, including a Japanese executive, for selling rice at higher than established prices.
Authorities said Monday that those detained include rice traders, millers and retailers. The charges relate to selling rice at prices up to 70 percent higher than what authorities consider acceptable as they grapple with deep economic instability amid the ongoing conflict in the country.
Among those detained was a Japanese executive whose arrest has sparked friction with Tokyo. Hiroshi Kasamatsu, head of the Aeon Orange supermarket chain, was arrested following an investigation into rice mills and supermarkets, the authorities' information team said on Sunday evening.
He added that Kasamatsu and three Myanmar nationals were suspected of price gouging “with the aim of generating economic chaos.”
Confusion
The impoverished Southeast Asian country has been in turmoil since the military seized control in 2021 after deposing the elected civilian government led by Aung San Suu Kyi.
The move sparked widespread protests that turned violent and have since morphed into nationwide armed resistance. According to the United Nations, the conflict has forced more than three million people from their homes.
In early June, Myanmar arrested 35 people in an attempt to crack down on gold and currency traders, as well as agents selling real estate abroad, with the aim of stabilizing a rapidly depreciating currency.
However, rice traders say the mismatch between the official exchange rate and black market rates causes major problems.
The conflict has also disrupted rice planting, harvesting and transportation, analysts say.
This has contributed to prices more than doubling in recent months, according to traders. They claim that selling at the officially authorized price would make them operate at a loss.
However, state media has blamed the El Niño weather phenomenon and market grabbers.
Yoshimasa Hayashi, Japan's Chief Cabinet Secretary, confirmed to reporters that police in Myanmar's commercial capital Yangon were questioning a Japanese citizen.
“The Japanese government intends to continue to take appropriate measures while urging local authorities to release him promptly,” it said, adding that the government is in contact with the Japanese national's employer to offer support.
