YGEA discusses paper gold investment

Yangon Region Gold Entrepreneurs Association (YGEA) is making an effort for paper gold investment at a bank over physical metal, the association stated. The association met the officials of Shwe Bank on 16 October regarding the paper gold scheme.

Paper gold is an asset that reflects the price of gold without physically owning the gold. A gold certificate will be issued by the Bank to the investors, said U Myo Myint, chair of YGEA. The paper gold investment can be seen in international trading. To implement this scheme, the association submitted a report to the Central Bank of Myanmar. Laws and rules are required to be drafted again.

Paper gold trading is a safe investment that guarantees the quality and value of the asset, held by the bank. At present, the price of gold in the domestic market remains in a high trend, tracking the spike in global prices and Kyat weakening on the US dollar. The price of precious pure gold metal touched a high of K1,840,000 per tical (0.578 ounces, or 0.016 kilogrammes), as per the YGEA. The global gold price stood at above US$1,766 per ounce, while a US dollar exchange rate was around K2,000.

Source: The Global New Light of Myanmar

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CBM sells $50 million on 18 Oct

The Central Bank of Myanmar (CBM) sold US$50 million at its FX auction rate of K1,820 on 18 October. The CBM sold the foreign currency to the prioritized sectors (palm oil, fuel oil and pharmaceuticals) at an auction rate through the authorized banks. The CBM sold the US dollars at the set rate to the banks with the authorized dealer license where the companies screened by National Trade Facilitation Committee opened an account. In September, the CBM sold 63 million dollars to the private banks to steer the local currency value.

Last September- end, a dollar value reached the highest of over K3,000 in history. The exchange rate on the US dollar hit around K2,000 in the local forex market at present, as per money exchangers. In August, the CBM reportedly sold $28 million at its auction rate. Kyat is weakening in the local forex market. In a bid to control the dollar gain against Kyat, the CBM sold about 6.8 million dollars on 3 February 2021, $12 million in April, $24 million in May, $12 million in June and $39 million in July in the auction market, respectively.

The US dollar exchange rate stood only K1,330 in January- end, whereas it rose to K2,000 at present, recording an increase of K700 in ten months. 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. The rate fluctuated between K1,585 and K1,730 in May and it moved to the maximum of K1,595-1,620 in June. The rate stood at K1,626- 1,670 in July. It hit the lowest of K1,660 and the highest of K1,682 in August. Last month, the rate edged up to K3,200 and fell to K1,696.

Source: The Global New Light of Myanmar