YANGON -- Myanmar's currency, the kyat, has plunged more than 17 percent against the dollar over recent days, in the latest shock to hit the military-run nation's crippled economy, traders and analysts say.

The recent introduction of a money-laundering law, the prospect of Thai border checkpoints reopening from Sunday and a continued crackdown on illegal currency trading are all contributing to the kyat's fall.

"Never mind that the dollar is not doing well elsewhere... it is a scarce commodity (here)," said one small importer.

Myanmar economic holdings, a military-owned corporation, has also ventured into the market to purchase dollars in recent weeks, observers said, fueling the decline.

The non-convertible kyat has been trading on Yangon's black market over the past three months at around 850 to the dollar, but dropped to more than 1,000 kyat when the market closed Wednesday, rivaling its record lows.

The currency rose slightly on Thursday, and opened at 990 to the dollar Friday.

Yangon's "law to control money and property obtained by illegal means" came into effect in June, giving a special committee wide-ranging powers such as access to bank accounts and permission to investigate personal income, property deals and money derived from ill-gotten gains.

"Since the enactment of the money-laundering law they (border traders) do not want to move such big amounts (between accounts) for fear of inviting official scrutiny... so they're turning to dollars, whatever they can get," one Yangon analyst told AFP.

The prospect of the Thai border crossings reopening shortly, after a three-month closure sparked by clashes between Myanmar troops and a rebel militia, is also increasing demand for the greenback.

Traders who have largely been shut down during the diplomatic row caused by the border fighting are expected to clamor for dollars which are the preferred currency for their businesses.

But observers also said that demand along all of Myanmar's borders has generally been boosted.

"The fact is that the demand for the greenback has increased, especially at the borders with Thailand, India, China and even Bangladesh, where businessmen holding greenbacks get better exchange rates," another analyst said.

Myanmar has a multi-tiered monetary exchange system, with the official rate set at 6.5 kyat to the dollar, but with most trade occurring at the fluctuating black market and export-dollar rates.

The latter is paid by importers, who must follow a law stipulating that only dollars earned through exports may be used for imports, meaning importers must search out exporters and pay them for the currency.

One importer told AFP he is currently shelling out 1,080 to 1,100 kyat for each export-dollar, the highest he has ever had to pay.