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Telegraphic Transfer system permitted for gold transaction below US$50,000

The international remittance for gold transaction valued at below US$50,000 is allowed to use Telegraph Transfer (TT) system, said U Myo Myint, Chair of the Yangon Region Gold Entrepreneurs Association. This move will revive gold export market, he continued. “Traders are no longer face hurdles in gold export. They are prepping for export. The goldsmith businesses also resume their operations. Transportation agents also embark on export procedures,” he was quoted as saying. Nevertheless, the transaction worth above $50,000 can be done only with Letter of Credit (LC).

Those who want to export gold can inquire the procedures at the One-Stop Service Centre. They can also request the YGEA for certain matters. As per the notification released by the Ministry of Commerce on 12 August 2020, transaction for gold export and import can be done only through LC system. Myanmar is placed on the grey list by the Financial Action Task Force (FATF), the inter-governmental body that sets anti-money laundering standards. Therefore, the country needs to monitor on the gold and jewellery exports and imports in order to ensure there is no illegal income.

As per the notification released by the according to the Trade Department, payment method was changed to LC.
The payment using LC can take about two months, cost banking service changes by two sides, and increase the charges for security matter in transport. Consequently, gold trading in the international market has also stalled due to volatile prices, YGEA stated. Starting from 20 December, TT system was given the green light for transaction valued at below $50,000 in gold exports. The transaction worth higher than that are permitted only with LC, Trade Department notified. Gold and other jewelleries are primarily purchased by Japan and the Republic of Korea, and other tourists also buy them, the YGEA stated. 

Source: The Global New Light of Myanmar