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Myanmar-Thailand border trade down by $61.49 mln as of 2 July

The value of Myanmar’s bilateral trade with the neighbouring country Thailand through land border has registered a decrease of US$61.49 million between 1 October and 2 July of the current financial year 2020-2021 as against a year-ago period, the statistics issued by the Ministry of Commerce indicated. The ministry reported that exports surpassed imports in trade with Thailand this year, with exports reaching over $2.2 billion and imports valued at over $971 million, totalling $3.179 billion. During the corresponding period of the past FY2019-2020, Myanmar-Thailand border trade touched a high of $3.241 billion. Following the COVID surge in Myanmar, some border posts are temporarily restricted, and at present, fruits and agricultural products such as cucumber, mango, tomato and vegetable, fishery products, building materials and other pharmaceutical-related goods and equipment can be traded.

During the last FY, Myanmar has increasingly exported corns to Thailand through the Myawady border. Myanmar’s corn exports to Thailand significantly soared to over 1.2 million tonnes through border posts between Myanmar and Thailand during the October and May period in the FY2019-2020, an official of the Ministry of Commerce said. There are seven border posts between Myanmar and Thailand, Tachilek, Myawady, Kawthoung, Hteekhee, Myeik, Mawtaung and Maisai. Except for Tachilek and Myawady, the remaining border posts showed a decrease in the trade this FY. The value of border trade stood at $204 million via Tachilek, $1.35 billion via Myawady, $245 million via Kawthoung, $95.79 million via Myeik, $1.2 billion via Hteekhee and $12.3 million via Mawtaung.

Maisai border post has not witnessed any trade yet. At present, Myanmar exports corn to Thailand through Myawady and Tachilek land border. Only Tachilek and Myawady showed an increase in trade, while the remaining indicated a drop in trade as against last year. Additionally, exports of natural gas from the Taninthayi Region contributed to the enormous increase in border trade with Thailand in the previous years. This year, gas exports via the Hteekhee border drastically fell. Myanmar primarily exports natural gas, fishery products, coal, tin concentrate (SN 71.58 per cent), coconut (fresh and dry), beans, and bamboo shoots to Thailand. It imports capital goods such as machinery, raw industrial goods such as cement and fertilizers, consumer goods such as cosmetics and food products from the neighbouring country. 

Source: The Global New Light of Myanmar

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Kyat value increases by K20 within week

The value of Kyat against a US dollar rose by K20 within a week (7-13 July) in the local for ex market. A dollar is worth K1,660 on 7 July, whereas the rate dipped to K1,635 on 13 July. The Central Bank of Myanmar (CBM) has sold 15 million dollars so far this month to control the value of the currency. Consequently, the Kyat value slightly increases in the local for ex market. The CBM sold 12 million dollars at an auction market in June as well. The bullish hard currency gained in the local for ex 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 in the local market, the CBM reportedly sold $24 million in May. Consequently, the exchange rate slightly fell to K1,580 in May. Nevertheless, it touches a high of above K1,600 for now. The CBM trades the foreign currency with the authorized private banks under the rules and regulations of the FX auction market. The local for ex 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.

The rate fluctuated between K1,585 and K1,730 in May and it moved to the maximum of K1,595-1,620 last month. 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