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YGEA hikes reference price to K2.1 mln per tical following gold spot price

Yangon Region Gold Entrepreneurs Association (YGEA) raised the reference price of yellow metal to K2.1 million per tical as gold spot price climbed in international markets. When the gold spot price was US$1,668 per ounce on 8 November, YGEA set the pure gold price at K1,965,000 per tical (0.578 ounces or 0.016 kilogramme). On 15 November, the gold spot price rallied to $1,783 per ounce. Therefore, YGEA hiked up the reference price to K2.1 million per tical.

The gold spot price jumped by $110 per ounce within one week. The pure gold price was up by K135,000 per tical. Despite the YGEA’s reference price, pure gold touched a high of K2.7 million per tical in the domestic markets. There is a gap of about K600,000 per tical between the YGEA’s reference price and market price.

YGEA calculated the price depending on the Central Bank of Myanmar’s reference exchange rate of K2,100, with some addition. The dollar was exchanged at K3,000 in the black market. Therefore, there is a large gap between the YGEA’s price and the market price based on the black- Meanwhile, YGEA called for the gold shops in Yangon Region to sell pure gold at K2,530,000 per tical, according to its notification released on 30 October 2022. The soaring dollar exchanging at over K4,500 pushed up the pure gold price to a record-high of K3.7 million per tical in late August.

Source: The Global New Light of Myanmar

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Traders sign petition to allow Yuan payment in Muse border

More than 60 traders signed a petition on 14 November to call for Yuan transactions in exports through the Muse border between Myanmar and China. Foreign Exchange Supervisory Committee notified the traders of the dollar payment for agricultural exports such as rice, corn, oil crops, beans and pulses, according to a directive dated 30 June. Yet, rice and broken rice exports are proceeding with Yuan at present. Rice and broken rice exports are given green light to proceed with Yuan as before.

However, transactions of rice and broken rice exports are found to be made only in US dollars in cross-border posts like the seaborne trade these days. That is why traders including rice and broken rice dealers signed a petition to request the authority to give the go-ahead for the Yuan payment in Muse border post. “At present, the official letter has not been released yet. The traders request them not to confirm the dollar payment for rice and broken rice in the border trade channel. Those exporters involved in banking, fishery and agricultural sectors joined this petition last Monday (14 Nov),” said a rice trader.

“Rice trade has not been good for two years at the Muse border with China. It has returned to the business at the present moment. If dollars are confirmed as cross-border payments, Muse trade is possibly to come to a halt. Consequently, the cons are expected to outweigh the pros. The traders are therefore begging for opposition to dollar payment,” said a rice trader. On 14 December 2021, the Central Bank of Myanmar released a notification that the use of Yuan or Kyat in the bilateral transaction was officially allowed in the border areas between Myanmar and China to boost bilateral cross-border trade, facilitate trading and bilateral transaction, increase the use of domestic currency in line with the objectives of the ASEAN Financial Integration. 

Source: The Global New Light of Myanmar