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The Central Bank of Myanmar sold $ 54.8 million at a foreign exchange auction within five months, the highest in May

From February to the end of June 2021, the Central Bank of Myanmar sold more than $ 54 million in foreign exchange auctions, with the highest sales in May, according to data released by the Central Bank of Myanmar. The Central Bank of Myanmar sold $ 6.8 million a month in February 2021. No sales in March. $ 12 million in April; It sold $ 24 million in May and $ 12 million in June. In January 2021, the central bank bought $ 1.8 million. 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 is responsible for its foreign exchange operations. A rule-based foreign exchange auction is underway to reduce inflation and implement the state’s two foreign reserves. Rules for Central Bank of Myanmar Competitive Auction Instructions are set out and these rules and regulations Authorized Dealer (AD) licensed foreign currency trading banks participating in the foreign currency auction in accordance with the instructions: three state-owned banks; Buying foreign currency with 19 local private banks and 13 foreign bank branches; And sales.

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 the depreciation; By comparison, the percentage devaluation of the Myanmar kyat exceeds the stipulated level (opening a competitive auction for the sale of US dollars, the percentage of appreciation of the Myanmar kyat exceeds the stipulated level). Comparison with Myanmar kyat to US dollar exchange rate. By comparison, a percentage of the appreciation of the Myanmar kyat exceeds the stipulated rules to open a competitive auction to buy foreign currency (US dollars); To buy foreign currency submitted by AD banks between the highest exchange rate and the lowest exchange rate announced by the Central Bank in the competitive auction. Submissions for sale are purchased and sold by the Central Bank of Myanmar using Refinitiv (formerly Thomson Reuters) ‘s Real Time Dealing Platform. For sale Opening a competitive auction to buy (US $).

To buy foreign currency submitted by AD banks between the highest exchange rate and the lowest exchange rate announced by the Central Bank in the competitive auction. Submissions for sale are purchased and sold by the Central Bank of Myanmar using Refinitiv (formerly Thomson Reuters) ‘s Real Time Dealing Platform. For sale Opening a competitive auction to buy (US $); To buy foreign currency submitted by AD banks between the highest exchange rate and the lowest exchange rate announced by the Central Bank in the competitive auction. Submissions for sale are purchased and sold by the Central Bank of Myanmar using Refinitiv (formerly Thomson Reuters) ‘s Real Time Dealing Platform. As mentioned above, the Central Bank of Myanmar is opening a foreign exchange auction in the short term. This is to reduce large losses and to 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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By the end of May of the 2020-2021 fiscal year, more than $ 3,750 million in foreign investment has been approved, with more than $ 254 million in the manufacturing sector

As of the end of May of the 2020-2021 fiscal year, more than $ 3,750 million in foreign investment was approved, including more than $ 254 million in foreign investment, including increased investment in the manufacturing sector, according to the Directorate of Investment and Company Administration. From the 2016-2017 fiscal year to the end of May 2021, Myanmar citizens invested more than 2,586 billion kyats in Myanmar’s manufacturing sector, accounting for nearly 23 percent of the total national investment, according to the Directorate of Investment and Company Administration.

From the 2016-2017 fiscal year to the end of January 2021, the national investment in the real estate sector was over 3,071 billion; In other sectors, more than 1,868 billion kyats; In the manufacturing sector, more than 2556 billion kyats; Over 1,141 billion kyats in the telecommunications and transportation sector; Over 1,125 billion kyats in the hotel and tourism sector; More than 436 billion kyats in the energy sector; Over 324 billion kyats in the industrial zone sector; Over 347 billion kyats in the livestock and fisheries sector; Over 228 billion kyats in the construction sector; In the mining sector, more than 75 billion kyats; More than 42 billion kyat has been invested in the agricultural sector and more than 13 billion kyat in the oil and gas sector.

In the fiscal year 2019-2020, 130 new Myanmar venture capital projects were approved, with a total investment of over 1,881 billion kyats, including a total investment of over $ 413 million. The Myanmar Investment Commission has approved a total of 130 new projects for Myanmar citizens in the 2019-2020 fiscal year with a total investment of US $ 266.873 million, including US $ 266.873 billion, for 1535.075 billion kyats. 1881.459 billion kyats was allowed to operate, including 618 million. The Myanmar Investment Commission has approved a total of 245 new ventures for foreign investment in the 2019-2020 fiscal year with a total investment of $ 4.235 billion, and has approved a total investment increase of $ 1.291 billion for 110 existing projects, including an increase in investment of $ 5.56 billion.

Source: Daily Eleven

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About 7,000 cattle stranded in Muse

With China stepping up border security for COVID-19, live cattle trading has ground to a halt, and about 7,000 cattle have been stranded in Muse town since December 2020. The domestic companies are sending cattle in line with Standard Operating Procedure to China through the Muse border. Before COVID-19, cattle were highly demanded. During the early outbreak of coronavirus, about 10 traders from China entered Myanmar to purchase over 1,000 herds of cattle per day. The resurgence of COVID-19 in Myanmar prompted China to tighten its border areas with Myanmar. Consequently, it was seven months that live cattle trading was halted. The traders are facing many hardships as it is difficult to take care of the cattle in yards during the rainy season. The traders have been burdened by labour wages, cost of feedstuff, healthcare services, and other general costs.

Furthermore, Chinese traders are constantly purchasing the cattle on the black market across border between Myanmar and China, said Chair U Soe Naing of the Mandalay Region Cattle Exporters Association. At present, the black market has been stronger. The legitimate market has halted since late 2020. The illegal market is happening. At present, the border trade is illegally carried out like the trade four years ago. Following about 10,000 cattle stranded in Muse last year, traders embarked on the illegal sales, he continued. For legitimate trade, China permits live cattle import only after ensuring the cattle is free from 20 diseases including Foot and Mouth Disease, along with vaccination certificates, health certificates, and farming registration certificates. Yet, those import criteria do not matter on the black market.

That is why Mandalay Region Cattle Exporters Association requested the officials concerned to deal with this black market and strive for resumption of the cattle trade. Myanmar’s live cattle export is heavily relying on China market due to a good price although Myanmar has other external markets such as Laos, Thailand, Malaysia and Bangladesh. The Ministry of Commerce grants a permit to each company for 100 cattle export, and the permit is valid for three months. The companies can be taken legal action if they do not sell the cattle during the three months. Live cattle export was allowed in late 2017 to eradicate illegal exports, creating more opportunities for breeders, promoting their interests and generating more revenues. Myanmar shipped US$360 million worth of animal products, including cattle, to the external markets in the financial year 2018-2019. The value of animal product exports dropped by $100 million in the 2019-2020 FY as against a year-ago period, following negative impacts of COVID-19. 

Source: The Global New Light of Myanmar

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Watermelon growers suggested 50% production drop next growing season

Watermelon growers flooded markets with excess supply this year and led to a market failure. Consequently, they are suggested to reduce the sown acreage acres by 50 per cent for the coming season, cross-border fruit depots stated. This year, about 30,000 trucks of watermelon and 12,000 trucks of muskmelons were conveyed to China via the land border. Nevertheless, a thousand trucks went in vain as they stranded in the road part, affecting the quality of the fruits. Some watermelons have been disposed of as well. The exports of watermelon drastically plunged as against last year as watermelon supply is exceeding the demand and transport delay triggered by the heightened COVID-19 measures in the border areas harm the quality of the fruits. As a result of this, the traders are encouraged to keep market balance and maintain the quality, Khwar Nyo Fruit Depot stated.

As China is stepping up the coronavirus containment measures in the border areas, the exporters of agricultural products including watermelon are suffering amid the COVID-19 resurgence. This year, some watermelon trucks returned from the Myanmar-China North-East border checkpoint as the watermelon was not traded well and the truck drivers were no longer bear the cost and tariff on the China border. Additionally, starting from 20 April 2021, the coronavirus test is mandatory for cross-border traders. Following the detection of the coronavirus cases in border Ruili, China restricted border access at the Man Wein checkpoint. Ruili-Kyalgaung river crossing has been also closed. Only Kyinsankyawt post is available for cross-border trade, causing delays and long queues. It takes about a month for a truck to enter the checkpoint.

As a result of this, the cross-border fruit depots suggest that the growers harvest the watermelon depending on the market condition to avoid a mismatch between supply and demand. A truckload of watermelon (855 variety) fetches 45,000-65,000 Yuan in mid-March. The price drastically plunged to 13,000 Yuan in mid-May and it does not even cover the truck freight rate. Myanmar’s watermelon market earlier relied only on China. Myanmar shipped 45 tonnes of seedless watermelon to the Dubai market in December 2020 and January 2021. After the country achieves success in the Dubai market, Myanmar has a plan to expand its market to Hong Kong SAR, the UAE and Qatar, the association stated. On 5 January 2021, 105th mile Fruit Wholesale Centre released a statement that the number of watermelon and muskmelon trucks for exports is to be set to govern the market. Myanmar yearly exports over 800,000 tonnes of watermelon and about 150,000 tonnes of muskmelons to China, the association stated. 

Source: The Global New Light of Myanmar