Yangon: Myanmar’s currencey, the kyat, fell to an all-time low of 1,330 to the U.S. dollar on the black market Friday, driving up prices of many ordinary commodities.

The kyat had been falling gradually all year, from 880 kyats per U.S. dollar in January to 950 in May and 1,170 in August.

Its previous low was 1,300 to the dollar was set in September 2002, after relatives of former dictator Ne Win were convicted of high treason.

The official exchange rate for the kyat, which is not freely traded internationally, is about 6 kyat per dollar, but most business transactions and consumer sales are conducted at the black-market rate. The government usually tolerates the unofficial exchange rate as the only realistic way of conducting trade.

The government usually blames rumormongers and market manipulators for currency instability. They normally react by warning black market dealers, or in some cases, rounding them up and giving them long jail sentences.

A black market currency dealer, speaking on condition of anonymity because of the illicit nature of his work, said the kyat’s current fall could not be pinned on any single reason, but the black market rate is often linked to China’s yuan, the U.S. dollar and the price of gold.

The official gold price for a tical of 24 carat gold had been 318,000 kyats (US$239, [euro]199) on Wednesday, and shot up to 340,000 kyats (US$256, [euro]213) at the official gold coin sales center Friday morning. One tical is equal to 0.525 troy ounces.

The higher price for imported goods due to the dollar’s strength lifts the price of local goods, including diesel fuel, medicine and food.

A gallon of diesel on the free market went up to 3300 kyats (US$2.48, [euro]2.06) on Friday from 3000 kyats (US$2.26, [euro]1.88) on Monday, affecting other commodity prices as transportation costs increased, though the official rate for one gallon of diesel remained at 180 kyats (US$0.14, [euro]0.12). Only a limited amount of diesel can be bought at the official rate

The cost of a cup of tea on a roadside shop rose to 150 kyats (US$0.11, [euro]0.09) from 120 kyats (US$0.09, [euro]0.07 ), while a bowl of mohinga, a traditional Myanmar dish made of fish gravy and rice noodles, jumped to 150 kyats (US$0.11, [euro]0.09) from 100 kyats (US$0.08 [euro]0.07).

The weakening local currency has also pushed up the price of medicine, especially imported medicine.

A bottle of Vasteral heart medication, which cost 14,000 kyats (US$10.53, [euro]8.76) last Friday, sold for 17,500 kyats (US$13.16, [euro]10.96) this Friday.