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CBM sells $3 million for first time in June

The Central Bank of Myanmar (CBM) sold US$3 million on 7 June for the first time this month at an auction market rate of K1,590. The CBM reportedly sold $24 million at an auction rate in May. The CBM’s move aims at governing the market volatility, the CBM stated. The bullish hard currency gained in the local forex market, reaching the peak of K1,730 on 12 May from K1,330 in January-end. In a bid to control the sharp daily gains of the US dollar, the CBM reportedly sold about 6.8 million dollars on 3 February 2021, 6 million dollars each on 22 and 27 April and $24 million in May in the auction market.

Consequently, the exchange rate dips to K1,590 at present. The CBM trades the foreign currency with the authorized private banks under the rules and regulations of the FX auction market. The local forex market’s data showed that the dollar exchange rate touched the maximum of K1,345 and the minimum of K1,327 in January 2021. The rate moved in the range of K1,335-1,465 in February. It reached the lowest of K1,420 and the highest of K1,550 in March. The rate fluctuated between K1,550 and K1,610 in April. Last month, the rate fluctuated between K1,585 and K1,730.

In 2020, the exchange rate moved in the range of K1,465-1,493 in January, K1,436-1,465 in February, K1,320-1,445 in March, K1,395-1,440 in April, K1,406-1,426 in May, K1,385-1,412 in June, K1,367-1,410 in July, K1,335-1,390 in August, K1,310-1,355 in September, K1,282-1,315 in October, K1,303-1,330 in November and K1,324-1,403 in December. In 2019, the rates are pegged at K1,508-1,517 in July, K1,510-1,526 in August, K1,527-1,565 in September, K1,528-1,537 in October, K1,510-1,524 in November and K1,485-1,513 in December. On 20 September 2018, the dollar exchange rate hit an all-time high of K1,650 in the local currency market. 

Source: The Global New Light of Myanmar


In the first eight months of the current fiscal year, Myanmar’s foreign trade deficit exceeded $360 million

In the first eight months of the current fiscal year, Myanmar’s foreign trade deficit reached more than $ 360 million, according to the Ministry of Commerce. The trade deficit means that Myanmar imports more than it exports in its foreign trade. In the eight months from October 1 to May 28 of the 2020-2021 fiscal year, Myanmar exported only $ 9.691 billion. Imports amounted to $ 10.058 billion. During that period, Myanmar’s exports and imports were worth $ 367.05 million more than exports. As a result, Myanmar’s foreign trade deficit of $ 367.105 million in the first eight months of the current fiscal year.

In the same period last year, Myanmar’s foreign trade deficit reached more than $ 1.5 billion, according to figures released by the Ministry of Commerce. Myanmar exports agricultural products Animal products Fishery products; Mining products; Forest products; Finished industrial products; It is mainly exporting to other exports. Foreign investment goods; Consumer goods Industrial raw materials; It is mainly importing CMP raw materials. Myanmar is developing and implementing export strategies to boost exports, while on the other hand it is trying to reduce the trade deficit as domestic demand has not been reduced due to domestic demand, but there are still some difficulties in practice, said an official from the Ministry of Commerce.

According to the Ministry of Commerce, the trade deficit in Myanmar’s foreign trade was only $ 89.223 million in the same period last fiscal year, 2019-2020. In the last fiscal year 2018-2019, the trade deficit is expected to be reduced to US $ 500 million. However, by the end of the fiscal year, the trade deficit was over US $ 1.15 billion. In the first six months of fiscal 2018, the total trade surplus was over US $ 18 billion, with a trade deficit of over US $ 1 billion. In the 2017-2018 fiscal year, the total trade volume was over US $ 33 billion and the trade deficit was over US $ 3.8 billion. In the 2016-2017 fiscal year, the total trade surplus was over US $ 29 billion, with a trade deficit of over US $ 5 billion, according to figures released by the Ministry of Commerce.

Source: Daily Eleven


Fishery exports plunge to $536.57 mln as of 28 May

Export earnings from the fisheries sector in nearly eight months (1 Oct-28 May) of the current Financial Year 2020-2021 touched a low of US$538.6 million, a significant decrease of $115.79 million from the year-ago period, according to statistics released by the Commerce Ministry. The figures stood at $652.37 million during a-year ago period. Myanmar’s fishery exports have slightly declined this year, owing to the COVID-19 impacts and the transport difficulty amid the political changes. The fishery exports through the Sino-Myanmar border has ground to a halt following the consequences and safety measures on the imported seafood amid the COVID-19 pandemic, traders stressed. Myanmar’s fishery export was experiencing a downturn due to the import restrictions triggered by the detection of the COVID-19 on fish imports in China. China was the second-largest buyer of Myanmar’s fishery products, accounting for US$254 million out of overall fishery export value of $850 million in the past financial year2019-2020.

At present, the fishery sector is dependent on maritime trade only. Food and Agriculture Organization (FAO) and World Health Organization (WHO) issued guidelines to ensure food safety during the COVID-19 pandemic in April 2020. Permitted companies are advised to carry out food safety plans, follow the WHO and FAO guidelines, formulate the safety management system and suspend the exports in case any suspicious foodborne virus or virus infection risk is found in the products. The export is likely to resume once the products meet food safety criteria set by the General Administration of Customs of the People Republic of China (GACC). Myanmar Fisheries Federation stated that only the G2G pact could tackle problems faced in exporting farm-raised fish and prawns and ensuring smooth freight movement between countries in order to bolster exports.

During the last FY2019-2020, MFF expected to earn more than $800 million from fishery exports, and it reached a target. Myanmar exports fisheries products, such as fish, prawns, and crabs, to markets in 40 countries, including China, Saudi Arabia, the US, Japan, Singapore, Thailand, and countries in the European Union. The MFF is making concerted efforts to increase fishery export earnings by developing fish farming lakes that meet international standards and adopting advanced fishing techniques. The foreign market requires suppliers to obtain Hazard Analysis and Critical Control Points (HACCP) and Good Aquaculture Practices (GAqP) certificates in order to ensure food safety. Fishery products must be sourced only from hatcheries that are compliant with GAqP to meet international market standards.

The MFF works with fish farmers, processors, and the Fisheries Department under the Ministry of Agriculture, Livestock, and Irrigation to develop the GAqP system. Processors can screen fishery products for food safety at ISO-accredited laboratories under the Fisheries Department. Myanmar’s economy is more dependent on the agricultural sector to a large extent. Also, the fisheries sector contributes a lot to the national gross domestic product (GDP). Its fishery production, including shrimps and saltwater and freshwater fish, is far better than the regional countries. There are 480,000 acres of fish and prawn breeding farms across the country and more than 120 cold-storage facilities in Myanmar. Myanmar exported 340,000 tonnes of fishery products worth $530 million in the 2013-2014FY, 330,000 tonnes worth $480 million in the 2014-2015FY, 360,000 tonnes worth $500 million in the 2015-2016FY, 430,000 tonnes worth $600 million in the 2016-2017FY, 560,000 tonnes worth $700 million in the 2017-2018FY and 580,000 tonnes worth over $730 million in the 2018-2019FY respectively, according to the Commerce Ministry. 

Source: The Global New Light of Myanmar