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The Central Bank of Myanmar sold $ 3 million in a foreign exchange auction, with the average exchange rate 1,665 kyats on 17 May

On May 17, 2021, the Central Bank of Myanmar sold $ 3 million in a foreign exchange auction, with the average exchange rate 1,665 kyats, according to the Central Bank of Myanmar. Monthly sales from January to December 2020 were $ 39.5 million in January 2020; $ 31.5 million in February; $ 21 million in March; $ 16.7 million in May; 39.1 million in June; $ 31.1 million in July; $ 35.6 million in August; $ 44.2 million in September; $ 43 million in October; $ 100,000 in November; It bought $ 7.8 million in December and $ 2.7 million in April 2020. 

It was resold in December 2020 for $ 3 million. It bought $ 1.8 million in January 2021 and sold $ 6.8 million in February. Short-term rise in foreign exchange rates; The central bank is launching a foreign exchange auction to reduce inflation and increase foreign reserves. The Central Bank of the Republic of the Union of Myanmar A regulatory-based foreign exchange auction is underway to reduce inflation and implement the state’s two foreign reserves. The Central Bank of Myanmar’s foreign exchange operations include short-term exchange rate fluctuations.

Comparing the exchange rate of Myanmar kyat with one US dollar to the previous day reference exchange rate to reduce depreciation, the percentage devaluation of the kyat exceeds the stipulated conditions (opening a competitive auction for sale in US dollars, the highest exchange rate announced by the central bank at the central bank auction and the lowest exchange rate announced by the central bank at the auction). As mentioned, the Central Bank of Myanmar is opening a foreign exchange auction in the short term. This is to reduce large losses and increase foreign reserves. The Central Bank of Myanmar (CBM) is conducting a foreign exchange auction to keep the exchange rate at a fixed rate. The Central Bank has stated that it does not intend to increase or depreciate the kyat.

Source: Daily Eleven

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Sino-Myanmar bilateral trade exceeds US$4.85 bln in five months

The value of Myanmar’s trade with China through maritime and sea trade channels totalled over US$4.85 billion in October and February of the 2020- 2021 financial year, including $2.54 billion worth of exports and $2.3 billion for import, according to data released by the Ministry of Commerce. Myanmar primarily exports agro products to China through the border gates. However, the trade of agricultural products is frequently halted on account of China clamping down on illegal trade at the border checkpoint.

Furthermore, China has been stepping up border control measures to contain the spread of the COVID-19, hindering the border trade at present. In a bid to lower trade barriers and offer relief to Myanmar traders through the border trade channel, the Ministry of Commerce, the related departments and the Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry have been negotiating with China counterparts. The two countries are making efforts to set up more border economic cooperation zones and promote border trade.

The value of bilateral trade with China stood at $12 billion in the 2019- 2020FY, $11.36 billion in the 2018-2019FY, $6 billion in the past mini-budget period, $11.78 billion in the 2017-2018 budget year and $10.8 billion in the 2016- 2017FY respectively. Rice, various types of peas, sesame seeds, corn, fruits and vegetables, dried tea leaves, fishery products, rubber, minerals and animal products are exported to China, whereas machinery, plastic raw materials, consumer products and electronic tools flow into Myanmar.

Source: The Global New Light of Myanmar

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Myanmar rice export down by US$ 30 mln in seven months of this FY

Myanmar has exported over 1.28 million tonnes of rice and broken rice as of 7 May this financial year (2020-2021), generating US$490.45 million, stated the Ministry of Commerce. However, Myanmar rice export has dropped by 512,589 tonnes in the seven months of this FY compared to last year. The export value of rice has also declined by $33.92 million this FY.

According to an announcement of the Ministry of Commerce, the volume of rice and broken rice between 1 October and 7 May in the last financial year 2019-2020 reached over 1.79 million tonnes, worth $524.4 million. The country exported over 700,000 tonnes of rice, generating an income of $198.870 million and over 500,000 tonnes of broken rice, earning $191.584 million this FY. China is the primary buyer of Myanmar rice. The Philippines, Côte d’Ivoire and Cameroon and Guinea are the second, third, fourth and fifth largest buyers of Myanmar rice, respectively.

Countries in the European Union account for over 20 per cent of Myanmar’s rice exports. In comparison, 25 per cent of the rice produced by the nation goes to African countries. Myanmar mainly exports broken rice to Belgium, followed by Indonesia, China, UK, and the Netherlands. Last FY, Myanmar exported rice and broken rice to more than 60 countries worldwide. China is the largest buyer of rice from Myanmar. However, demand from the Philippines, Malaysia, Madagascar, Poland, Guinea, Belgium, Senegal, Indonesia, the Netherlands, and the UK has risen through the years. Around 16 per cent of exports are conducted at the border while the remaining is exported by sea.

Source: The Global New Light of Myanmar