Merchants on the Sino-Burma border have been hit hard by the recent devaluation of the Burmese currency, said a leading member of the Trader's Association based on the border.

Burmese currency amounting to 1,000 Kyat was equivalent to Chinese 6 Yuan in the past. Now 1,000 Kyat is equivalent to 5.25 Yuan. This exchange rate leads to Burmese merchants losing 150 Kyat during exchange from Burmese Kyat to Chinese Yuan.

"It's been happening for a month now. The exchange rate has hovered between 6 to 5 Yuan. Now it's 5.25 Yuan. In the past, the exchange rate was between 6.57 to 6.58 Yuan. It has fluctuated between 5 and 6 Yuan but trading was less. In the past, if you gave 6 Yuan you would get 1,000 Kyat. Now the exchange rate is 5.25. So we lose 150 Kyatduring exchange of every 1,000 Kyat", the trader said.

It started since the Beijing Olympic Games in China. During the Olympics, trading and travelling between two countries became very difficult. Since then Burma is exporting few goods to China.

"Trading here is very low. It's because traders could not go to sell their goods in mainland China during the Beijing Olympics. Currently there is the global financial crisis. Therefore, they are not buying goods," he added.

Except prohibited goods, the two nations can freely trade import and export items. Though, Burmese merchants have faced difficulties because of the imbalance between sale and purchase prices.

With exchange rates decreasing linked with the global economic crisis and decrease in demand from China things are on a downslide, a border financial market analyst said.