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

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Myanmar mineral exports down by $975 mln in 2020-2021FY

THE value of Myanmar’s mineral exports drastically sank to US$895.6 million last FY2020- 2021, reflecting a drop of $975 million, the Ministry of Commerce’s data indicated. The mineral exports hit over $1.87 billion in FY2019-2020. The coronavirus related disruptions led to the slump in mineral exports this FY. The heightened COVID-19 measures also shut down the events like gem emporium and expo last year, a trader said. Additionally, Lonekhin, Phakant, Mawlu and Mawhan gem and jade mining in Kachin State will be temporarily suspended from 1 October 2021 to March end 2022 to support sustainable resource extraction, and ensure safe and efficient operation of jade and gems mines, according to Myanma Gems Enterprises.

So far, excavation of over 1,250 mining blocks has been permitted on a manageable, small, medium, and large scale, mostly in Mandalay and Sagaing regions, according to the Ministry of Natural Resources and Environmental Conservation. Due to the limited extraction of natural resources, exports of forest products and minerals had dropped significantly in the previous years. Permits for mining blocks were suspended in 2016, but after two years, Myanmar’s mining sector has now been opened to local and foreign investors, according to the ministry. The Myanmar Mines Law was enacted on 24 December 2015, but the law came into force when the rules were issued on 13 February 2020.

Under the new regulations, foreign firms can invest in large blocks which cover up to 500,000 acres (about 202,000 hectares), while local firms can invest in all kinds of blocks. Investors can seek a permit to mine for minerals such as gold, copper, lead and tin. The permits cover prospecting, exploration, and production. Myanmar’s mineral exports have shown a marked increase in the FY2019-2020, touching $1.87 billion, an increase of $405.48 million compared with the year-ago period, according to data from the Ministry of Commerce. Oil and natural gas are included in the list of major export items of Myanmar. About six per cent of the country’s total export earnings come from the sale of natural gas. About 80 per cent of mineral products are shipped to external markets through sea trade, while 20 of them are sent to neighbouring countries through border trade channels.

Source: The Global New Light of Myanmar

CBM needs to stabilize dollar exchange rate: MPTA

The central bank of Myanmar (CBM) needs to stabilize dollar exchange rate, said U Win Myint, chairman of the Myanmar Petroleum Trade Association (MPTA). The main thing is the dollar exchange rate to be stable in the market. If the authorities can arrange this matter, it would be fine. Now people are only looking to buy US dollars in the foreign market, with almost no one willing to resell. That’s why, it would be good if the CBM could manage a stable market system to deal with this situation. The authorities are not talking about to sell them at low price. The exchange rate should be selling at a reasonable price, said U Win Myint.

The domestic fuel oil price hike is attributed to the devaluation of Kyat in the foreign market. Currently, the US dollar exchange rate still reached a record high in Myanmar of around K2,000 per dollar. The fuel oil was pegged at around at K590 per litre for Octane 92, K610 for Octane 95, K590 for diesel and K605 for premium diesel in early February 2021 in the domestic retail market. Then, it remarkably climbed up to K1,455 for Octane 92, K1,490 for Octane 95, K1,465 for diesel and K1,470 for premium diesel on 26 September 2021, according to the local fuel oil market.

There is a remarkable price gap of K800 per litre, according to the local fuel oil market. Starting from 22 September, Myanmar Petroleum Trade Association (MPTA), in cooperating with the Ministry of Commerce have sold fuel oil at fair prices, is equivalent to the amount that the oil importers directly purchased the foreign currency from the Central Bank of Myanmar, aiming to offer reasonable rate, according to the association. The association sold about 44,500,000 litres of fuel oil from 22 September to 13 October. And, about 8.9 million litres remain to be sold in the market. Myanmar imports around 6 million tonnes of fuels yearly, according to the Ministry of Commerce.

Source: The Global New Light of Myanmar

There were over $ 3,100 million of foreign investment in Myanmar’s energy sector in fiscal year 2020-2021

From October to the end of September of the 2020-2021 fiscal year, more than $ 3,100 million in foreign investment in Myanmar’s energy sector, according to the Directorate of Investment and Company Administration. By 2021, Myanmar’s Generation Mix will generate 40 percent of its electricity from hydropower, 34% from natural gas.

Solar will account for 14 percent and will increase to more than 8,100 megawatts, according to the Ministry of Power and Energy. Myanmar had only 34% access to electricity before 2016, but will increase to 56% by 2020.  According to the Ministry of Power and Energy, efforts are being made to achieve 75% of the country’s electricity by 2025 and 100% by 2030. Myanmar’s energy resources are mainly based on renewable energy such as hydropower and solar energy and clean energy such as natural gas and LNG.

Upper Kengtung Hydropower Project, 51 MW for Myanmar’s electricity needs; 280 MW Upper Yeywa Hydropower Project; According to the Ministry of Power and Energy, four projects are underway: the 152-megawatt Central Paunglaung Hydropower Project and the 111-megawatt Thu Htay Hydropower Project. In 2016, the Ministry of Electricity and Energy generated 48,000 megawatt-hours per day from various sources and is now increasing to 65,000 megawatt-hours per day. It is generating 3,225 megawatts of electricity from 28 hydropower plants.

Source: Daily Eleven

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One million doses of COVID-19 vaccine from China arrive at Yangon Int’l Airport

The Ministry of Health is delivering the COVID-19 vaccine in targeted regions and states to control the COVID-19 disease. The first batch of one million Sinovac brand vaccines donated by the People’s Republic of China for vaccination arrived at Yangon International Airport on 13 October. Also, the second batch of one million Sinovac doses and 1,001,600 needles arrived at Yangon International Airport on 14 October (yesterday) and was received by a team led by the Head of Yangon Region Public Health Department.

These vaccines will be delivered to respective states and regions with the help of the Tatmadaw (Air) and Myanmar Airways, via a cold chain system, officials said. As of 14 October, a total of 18 million doses of COVID vaccines were purchased by the Ministry of Health including 2 million Covishield vaccines, 14 million Sinopharm vaccines and 2 million Sinovac vaccines have already arrived. Over 8 million doses of COVID-19 vaccine donated by India, Russia and the People’s Republic of China have also been received.

To control COVID-19 disease, the COVID-19 vaccine is being given in targeted groups in respective regions and states. As of 13 October, a total of 10,751,760 people have been vaccinated, and 4,266,484 have been fully vaccinated twice and 6,485,274 have been vaccinated for the first time. Therefore, to date, a total of 15,018,246 vaccines of COVID-19 have been given in Myanmar. “People should not miss a dose of the COVID-19 vaccine given to them. Those who have received their first dose of vaccines are also encouraged to actively participate in second dose vaccination activities by visiting the nearest vaccination group in time,” officials said.

Source: The Global New Light of Myanmar

epa07799064 A general view shows trucks loaded containers at Asia World shipping container terminal in Yangon, Myanmar, 28 August 2019. According to figure by Myanmar Ministry of Commerce, Myanmar's total trade with foreign countries reached over 30.593 billion USD as of 16 August 2019 in present fiscal year (from 01 October 2018 to 31 September 2019), of which the export reached 14.69 billion USD while the import was 15.903 billion USD. In 2017-2018 October to September fiscal year, the total trade was 35.895 billion USD and the trade balance had a deficit of 3 billion USD. The most important exports in Myanmar are manufactured products whereas the non-electric machinery and transport equipment are the major products of imports. EPA-EFE/LYNN BO BO

External trade down $7.15 bln this FY

Myanmar’s external trade between 1 October and 30 September in the financial year 2020-2021 indicated a significant down to US$ 29.58 billion, a sharp drop of over $ 7.15 billion compared to that of the last year, according to the Ministry of Commerce. During the same period in the previous FY, the trade stood at $36.73billion, according to data released by the ministry.

Over the past months, Myanmar’s export was worth over $14.93 billion, which plunged from $17.68 billion registered a year-ago period. Meanwhile, the country’s import was valued $14.66 billion, showing asignificant decrease of $19.05 billion compared with the last FY. Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods, while it imports capital goods, raw industrial materials, and consumer goods.

The country’s export sector relies more on the agricultural and manufacturing sectors. The Ministry of Commerce is focusing on reducing the trade deficit, export promotion and market diversification. The external trade stood at $36.73 billion in the 2019- 2020FY, $35.147 billion in the 2018-2019FY, $18.728 billion in the 2018 six-month interim period, $33.578 billion in the 2017- 2018FY and $29.209 billion in the 2016-2017FY, respectively, as per the Commerce Ministry’s statistics.

Source: The Global New Light of Myanmar

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Livestock, fisheries attract six foreign investment projects in 2020-2021FY

The livestock and fisheries sector attracted six foreign investment projects during the last financial year 2020-2021, according to the Directorate of Investment and Company Administration (DICA).

Those businesses brought in about US$19.698 million, including the expansion of investments by the existing joint ventures. They are executing layer farming, pig farming and sales of pigs, production and farming of eggs and shrimp, as per data of the DICA.

Since 1988-1989FY, about $924.5 million of FDI have flowed into the livestock and fisheries sector. Next, 16 countries have invested in the livestock and fisheries sector so far. Among them, Thailand has topped the list of investments, with over $380 million, followed by Singapore with about $130 million. Myanmar’s livestock and fishery sector are crucial to the livelihoods of many vulnerable households and contribute to improving nutritional outcomes in the country.

Source: The Global New Light of Myanmar

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In the first 11 months of the 2020-2021 fiscal year, the CMP garment sector was the largest exporter with over US $ 3,240 million, followed by natural gas with over US $ 2,693 million

In the 11 months from October to the end of August of the 2020-2021 fiscal year, Myanmar exported more than $ 3,240 million worth of garments from the CMP sector, followed by natural gas at more than $ 2,693 million, according to the Ministry of Commerce. In the 11 months from October to August of the 2020-2021 fiscal year, Myanmar exported $ 3,240.04 million worth of garments through the CMP wage system. Exports of natural gas were $ 2,693.78 million and rice and broken rice were $ 661.41 million.

In the 11 months to August of the 2020-2021 fiscal year, Myanmar topped the list of top 10 exporters with $ 4,760.55 million, followed by Thailand with $ 3,002.05 million. $ 855.20 million to Japan; $ 729.97 million to India; $ 566.66 million to the United States; $ 397.42 million to Germany; $ 361.16 million to Spain; $ 352.47 million to the UK; $ 324.26 million to the Netherlands; It exported $ 278.58 million to South Korea.

From October 1 to the end of September of the 2019-2020 fiscal year, Myanmar-China trade amounted to more than $ 12.126 billion, and China imported more than $ 6.724 billion worth of imports. From October to September of the 2019-2020 fiscal year, Myanmar-China trade amounted to $ 12126.278 million, with exports from Myanmar worth $ 5,401.943 million and imports from China worth $ 6,724.335 million. The main priority areas of the National Export Strategy 2020-2025 are agro-based food production, textiles and clothing; Industry and electronics; Fisheries sector; Forest products; Digital products and services; Logistics services; Quality management sector; Trade Information Services; And innovation and entrepreneurship.

Source: Daily Eleven

The Central Bank announces trading of Chinese Yuan and Japanese Yen will be allowed

The Central Bank of Myanmar announced on October 12 that it will allow the trading of Chinese Yuan and Japanese Yen.

In accordance with Directive No. (16/2021) issued on 12 October, Directive No. (6/2011) issued to licensed banks and non-bank organizations engaged in foreign exchange trading; (7/2011). In addition to the five foreign currencies allowed to buy and sell in accordance with (16/2012) and (17/2015), it is also allowed to buy and sell Chinese RMB and Japanese Yen.

In Myanmar, US dollar, Euro dollar, Singapore Dollar, Malaysian Ringgit, Thai baht, and the Japanese yen have also been allowed to trade in foreign currency. All Banks with Authorized Dealer License All banks with Money Changer License; It has been distributed to all non-bank companies with the Money Changer License.

Source: Daily Eleven

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Myanmar aquaculture exports down by 8.6% in 2020-2021FY

The value of Myanmar’s aquaculture exports in the financial year 2020-2021 (October-September) dramatically dropped to US$784.889 million, showing a decrease of 8.6 per cent compared to the previous FY2019-2020, as per the statistics released by the Ministry of Commerce. The figures fell short of $74 million to reach the value recorded during the year-ago period. Myanmar shipped $858.95 million worth of fishery products to the external market in the corresponding period of last FY. Myanmar Fisheries Federation (MFF) is attempting to grow fishery export regardless of the COVID-19 disruption on maritime trade, closure of land borders and fuel oil price instability. Despite the open season of offshore fishing, Myanmar’s fishery export industry is facing a series of challenges such as the oil price hike, surge in container shipping rate, the closure of border posts, disruption on maritime trade and the COVID-19 negative impacts.

Consequently, it will harm the export sector somehow in the long term. “If the border posts resume the trade activity, the trade will go smoothly. The closure of the border posts is triggered by the COVID- 19 threats. The cross-border between Myanmar and Bangladesh is still open for trade. The federation is planning to export fishery products to Bangladesh. Myanma Port Authority is also ensuring smooth freight flow with non-stop operation. The federation is attempting to tackle these fishery export hurdles,” said Dr Toe Nanda Tin, senior vice-president of the MFF. The price of fish fell by half. The high input cost such as fishing net, oil price posed another burden for the industry, coupled with the devaluation of Kyat in the forex market, Mawlamyine Commodity Centre stated. The marketable fish products, especially fish, shrimp, eel and crab from Taninthayi and Ayeyawady regions and Rakhine state are primarily exported to foreign markets.

The federation is turning to the Bangladesh market with export potentials. MFF is working together with the stockholders in the supply chain to have sustainable export growth 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. Chinese market constitutes about 65 per cent of Myanmar’s fishery exports. China accounted for US$254 million out of overall fishery export value of over $850 million in the past financial year 2019-2020. At present, China shut down the border areas in the wake of the COVID surge in Myanmar. Myanmar Fisheries Federation stated that only a G2G pact can tackle problems being faced in the export of farm-raised fish and prawns and ensure smooth freight movement between countries to bolster exports.

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. To ensure food safety, the foreign market requires suppliers to obtain Hazard Analysis and Critical Control Points (HACCP) and Good Aquaculture Practices (GAqP) certificates. To meet international market standards, fishery products must be sourced only from hatcheries that are compliant with GAqP. The MFF is working 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. There are 480,000 acres of fish and prawn breeding farms across the country and more than 120 cold-storage facilities in Myanmar.

Source: The Global New Light of Myanmar