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Year-end market outlook of Bayintnaung Wholesale Centre

The prices of rice, edible oil, onion, chilli pepper, sugar and jaggery hit an unprecedented record high this year.
Similarly, the prices of related food groups also inflated. When the prices of commodities declined, the food prices did not show a price retreat. Those traders in possession of goods reaped a handsome profit amid the fresh peak in prices rather than the growers.

Rice
The low-grade rice price rocketed from K32,000 in early January 2022 to K48,000 per bag in December. However, new monsoon low-grade rice fetched only K42,000 per bag. The broken rice exported to foreign markets increased from K28,000 to K38,000 in December. In the second half of 2022, the price of broken rice hit a peak of K40,000 per bag. The price of sticky rice also surged from K60,000 per 102-pound bag in early 2022 to K95,000 in November and then, dipped to K80,000-85,000 per bag in December.
In early 2022, the price of high-grade Pawsan from the Shwebo area was only K43,500 per bag while those from Pathein and Myaungmya areas were priced at K45,000 per bag. In September, the prices rocketed to K70,000 for Pathein-Myaungmya Pawsan and K95,000 for Shwebo Pawsan. In December, new Pawsan rice was worth K64,000-70,000 per bag depending on the producing areas.

Palm oil
The palm oil wholesale reference price slipped from K4,450 to K4,360 per viss in December.
In March 2022, the original price of palm oil was K6,445 per viss if it was calculated on the dollar exchange rate at K1,787. The reference price was set at K6,575 per viss. The wholesale market price was K70,000 per viss.
From mid-2022, the reference price was issued on Mondays depending on the imported palm oil prices. The reference price increased to K5,815 per viss in the last week of June and then dropped to K3,525 per viss in early August. The reference price was set at K4,360 per viss at the end of December, while the delivery order price was K5,150.
The market prices are way higher than the reference price. The palm oil price rocketed to K9,500 per viss in August. The wholesale market price of palm oil fluctuated between K4,500 and K9,500 per viss in 2022. The wholesale prices of peanut oil stood at K6,000 per viss in early 2022, K13,000-K14,000 in August and K9,500 in December.

Pulses
The new black gram price was approximately K1.3 million per tonne in early 2022 and the price rose to K1.7 million in December. The price hit the highest of K2.1 million on 31 August.
Similarly, the price of pigeon peas rose from K1.2 to K1.7 million per tonne in December. It soared to K2.175 million per tonne on 19 September.
The price of chickpeas that is highly consumed in the domestic market slightly moved up to K4,050-K4,250 in December from K2,950-K3,050 per viss in early 2022. It hit a record price of K4,400-K4,700 per viss in mid-September. Also, the price of green gram (Shwewah variety) slightly decreased to K2,830-K3,000 in December from K2,950-K3,200 per viss. In early September, they were priced at K3,165-K3,500 per viss.

Onion
The wholesale prices of onions moved in the range between K800 and K1,050 per viss in early January 2022 depending on the size and varieties. The price data showed a three-fold increase of K2,400-K2,800 per viss in December. The highest price of old summer onion was K5,100 per viss on 2 December.
Early entry of fresh monsoon onions in November occurred in the market. There has been no entry of old summer onions to the Yangon market since the second week of December. The prices of onion stood at K4,800 per viss from the Myittha area and K4,400 from the Myingyan area.

Garlic
The prices of garlic from Shan State (Aungban area) hit a five-year high of K3,700-K5,000 per viss on 20 December. The lowest prices were K1,500-K3,000 per viss in early December.
Meanwhile, Kyukok garlic price hit the highest of K7,000 per viss on 8 March. The price declined to K2,600-K2,800 in the last week of June and K3,400 per viss at the end of 2022.

Potato
The wholesale prices of potatoes were K1,800-K2,100 per viss of Shan potato and K1,650 for Chinese potato in early 2022, whereas the price is relatively the same as K1,700-K2,100 per viss of Shan potato and K1,750-K2,250 per viss of Chinese potato.
On 14 September, Shan potatoes were priced at K1,500-2,300 per viss and Chinese potatoes were valued at K2,450-K2,500 per viss. At the end of 2022, the supply of Chinese potatoes outstripped the entry of Shan potatoes.

Jaggery, sugar
This year, the prices of sugar and jaggery climbed to the fresh peaks in history. When the sugar mills are running, the prices do not usually go up. In December 2022, the wholesale price of sugar hit K2,620 per viss.
The prices were estimated at K2,000 per viss of sugar and K1,950-K2,750 per viss of jaggery in early 2022. On 21 September, the maximum prices were K2,550 per viss of sugar and K3,700-K3,750 per viss of jaggery.

Tamarind
Only the prices of tamarind remained unchanged in 2022, ranging from K2,000 to K2,900 per viss in January and the prices stood at K1,900-K3,200 per viss at December-end.

Chilli pepper
The chilli pepper was recorded with the highest fluctuation in 2022. The price tremendously jumped to K31,000 per viss of bell pepper, K20,000 per viss of Moehtaung variety and K21,500 per viss of long chilli pepper processed in cold storage.
In early January, Moehtaung chilli pepper was priced at K8,000, while long chilli pepper from delta regions is valued at K5,000 and bell pepper was valued at K8,500-K9,500 per viss. At the end of the year, the fresh supply of new chilli peppers drove the prices down to K13,500 per viss for long chilli peppers, K12,000 for Moehtaung variety and K14,000 for bell pepper.

Source: The Global New Light of Myanmar

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Year-end review of currency, gold and fuel oil market

Currency market volatility resulted in price swings in gold and fuel oil in 2022. The World Bank did not issue a Gross Domestic Product growth forecast for Myanmar. Other than Myanmar, the GDP growth forecasts stand at 2.9 per cent for Thailand, 3.8 per cent for Laos, 4.5 per cent for Cambodia, 2.4 per cent for Timor-Leste, 5.9 per cent for Viet Nam, 5.1 per cent for Indonesia, 5.5 per cent for Malaysia and 5.7 per cent for the Philippines. Myanmar is the only country among the ASEAN that the World Bank did not issue a GDP forecast.

Myanmar was hit the hardest by the pandemic-stricken economy and the political changes. The interrelations among three essential key players in the economy (the USD, gold and fuel oil prices) diversified the country’s economy. Stability of those markets matters to the economy. As a result of this, under the guidance of the Central Committee on Ensuring Smooth Flow of Trade and Goods, the Monitoring and Steering Committee on Gold and Currency Market was formed on 17 December 2021 as gold and currency market stability plays a crucial role in the trade facilitation.

The objectives of the committee are inspecting and prosecuting market manipulation, checking if there is compliance with payment rules or not in the domestic market, and proceeding against those unscrupulous traders who intend to interfere with the free and fair operation of the market under the existing laws, by-laws and regulations in line with the official directives, illegal foreign currency holding, illegal trade and taking legal actions against price manipulators.

Furthermore, the officials concerned will crack down on those people involved in charging a percentage for money withdrawals at the banks as shadow money. People can file complaints with the committee regarding threats to financial stability, as per this notification. In 2022, Myanmar’s currency, gold and oil prices fluctuated wildly. The remarkable factors of the changes are revealed as follows.

Foreign exchange market
The Central Bank of Myanmar frequently issued directives and notifications this year with the impacts of the uncertainty of the foreign exchange market. According to the provisions stipulated in Sections 11, 12 and 13 of the Foreign Exchange Management Law, all the foreign currency earned by locals has to be exchanged for local currency at the Central Bank of Myanmar’s reference rate by opening the accounts at the authorized dealers (ADs) in the country within one working day, according to the notification released on 3 April 2022. The reference exchange rate for the US dollar was set at K1,850.

The aforementioned notification is effective for all foreign currency accounts opened at the ADs before 3 April 2022. From 4 April, outward remittance is to be undertaken through the ADs under the approval Foreign Exchange Supervisory Committee (FESC) and further directives are to be issued. The statement mentioned changes in the CBM’s reference rate will be further noticed. Those who fail to comply with those directives will face legal action under the Foreign Exchange Management Law. The impacts of those notifications negatively affected the exporters depending on the export value transactions.

Afterwards, the directive released on 30 June said that transactions for the exports of agricultural products including corn, rice, bean and oil crops are to be made in dollars instead of Yuan-Kyat/Baht-Kyat. Therefore, export earnings have to be exchanged for US dollars according to the reference rate of the Central Bank of Myanmar (K1,850). Nonetheless, there is a large gap between the regulated rate and the unauthorized rate of the US dollar. Consequently, it weighed on agricultural exports and exports drastically fell compared to the previous years. Of agricultural products exported to China through cross-border posts, rice and broken rice exports are given green light to proceed with Yuan as before.

According to the US dollar policy, 65 per cent of earnings must be exchanged for local currency at the CBM’s reference foreign exchange rate, while exporters can use 35 per cent of export earnings or transfer or sell them to Authorized Dealers or others with an over-the-counter rate within one month. Rice export was excluded from that restriction. The US dollar was valued at only K1,900 in early 2022. Then, Kyat depreciation hovered and weakened at K3,000 in the grey market. Therefore, the relevant authorities also interrogated some gold traders and currency exchange operators in end-July.

Thereafter, the CBM made the four-month fixed rate of K1,850 hike to K2,100 on 5 August. To strengthen the domestic currency in the local forex market, the CBM set CBM set the currency trading band at 0.3 per cent for the Kyat to fluctuate between these two specified upper and lower exchange rates for transactions, selling or buying, according to a directive issued by the CBM on 10 August 2022. Therefore, financial institutions including banks and informal money exchanges set a dollar value of K2,100 for buying and K2,106 for selling.

Nonetheless, those rates are not effective in trading for now. Despite the CBM’s notifications, a dollar value hit an all-time high of over K4,500 in the grey market at the end of July. The prices of pharmaceuticals, commodities, consumer goods, raw materials and other imported goods inflated, triggering a shortage of medicines and some important items. The CBM practised foreign exchange intervention to steer its own currency value and sold the US dollar from the state’s reserve funds at an auction rate for the edible oil, fuel oil and medical sectors. Thanks to the CBM’s intervention, the Kyat-US dollar exchange rate declined to K2,850 at the end of the year.

Gold market
Domestic gold prices moved up and down this year along with instability in the currency market. Gold export came to a halt owing to the restriction of international flights amid the pandemic. The price of gold was only K1,820,000 per tical (0.578 ounce or 0.016 kilogramme) in early 2022. The gold price had a bumpy ride because of the chaos in the foreign exchange market. In a bid to end the black market and stabilize the volatile prices, Yangon Gold Entrepreneurs Association urged the members and gold traders to seek a business licence for gold shops and licence for gold bar transactions and it will take action against those unauthorized dealers involved in online trade platforms under the existing laws, according to its statement released on 17 May.

Additionally, the CBM released a statement on 3 April 2022 that gold transactions were to be made depending on the reference exchange rate (K1,850) to control the price rally. YGEA called for an urgent meeting on 8 April. The meeting determined to carry out gold transactions depending on the CBM’s reference exchange rate. However, it has not come into force yet. The local gold price correlates with the global gold spot price and foreign exchange market.

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. The Ministry of Natural Resources and Environmental Conservation declared the sales of gold coins weighing one tical, 0.5 tical and 0.25 tical through state-run media on 2 September. The gold coins have been on sale at Nay Pyi Taw’s Gems Emporium from 5 September, except on public holidays. The sales have expanded to new locations in the Yangon and Mandalay regions in addition to Nay Pyi Taw.

The governor of the Central Bank of Myanmar (CBM) and officials of the Monitoring and Steering Committee on the Gold and Currency Market discussed matters regarding the stability of the gold and currency market in the afternoon of 14 September in Nay Pyi Taw. At the meeting, the governor of the CBM remarked on the further coordination of the departments concerned, gold bar transactions to be made with the banking system and operations of the banks, further support of the ministries concerned and the CBM to achieve price stability, and further cooperation between gold businesspersons and the officials.

Then, on 30 September, the seven private banks opened special counters at the designated 48 branches to offer banking services for gold transactions. The seven private banks are providing banking services by opening special counters at their 48 branches in Yangon and Mandalay regions and Mon State (Mawlamyine) to facilitate gold transactions with the banking payment system. Those banks are Kanbawza Bank (KBZ Bank), Co-operative Bank (CB Bank) PCL, Ayeyawady (AYA) Bank, Myanmar Apex Bank (MAB), UAB Bank, Yoma Bank and Ayeyawady Farmers Development Bank (A Bank). With an aim at reducing gold prices, the YGEA and Mandalay Region Gold Entrepreneurs Association sold gold bullion supplied by the executive members. the members, gold refinery shops and traders as well.

The Ministry of Natural Resources and Environmental Conservation sold three visses of gold ingots each in Yangon and Mandalay under the auction system on 6 October. This move resulted in the gold price decrease of K2,697,000 per tical at the end of the year. Despite the YGEA’s reference price of K2,140,000 per tical, the market price still rocketed to K2,697,000 per tical. There is a price difference of over K500,000 per tical between the reference price and the 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 K2,850 in the black market in the end-2022. 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.

Fuel oil market
In 2022, the fuel oil market went up and down along with the currency market. Ninety per cent of fuel oil in Myanmar is imported, while the remaining 10 per cent is produced locally. The domestic fuel price is highly correlated with international prices. The State is steering the market to mitigate the loss between the importers, sellers and energy consumers. Consequently, the government is trying to distribute the oil at a reasonable price compared to those of regional countries.

Some countries levied higher tax rates and hiked oil prices than Myanmar. However, Malaysia’s oil sector receives government subsidies and the prices are about 60 per cent cheaper than that of Myanmar. Every country lays down different patterns of policy to fix the oil prices. Myanmar also poses only a lower tax rate on fuel oil and strives for energy consumers to buy the oil at a cheaper rate. Myanmar annually imports 6 million tonnes of fuel oil from foreign countries. As a result of this, the global crude oil prices and currency market conditions highly affected the fuel oil market.

In early 2022, the prices touched a low of K1,390 per litre for Octane 92, K1,440 for Octane 95, K1,375 for diesel and K1,385 for premium diesel. Tracking the Kyat devaluation against the US dollar in the forex market, a fuel oil price rally happened. The Ministry of Commerce in coordination with the Myanmar Petroleum Trade Association carried out a scheme to distribute fuel oil at fairer rates through the government-sponsored petrol station chains. And, the energy consumers could buy them in early 2022. The total volume of fuel oil that is sold at very cheap rates is equivalent to the amount that the oil importers directly purchased the foreign currency from the CBM.

The Supervisory Committee on Oil Import, Storage and Distribution of Fuel Oil is issuing the daily reference rate for oil to offer a reasonable price to energy consumers. The reference rate is calculated as per the price index set by the Mean of Platts Singapore (MOPS), shipping cost, profit margin, premium insurance, tax and other general costs. The rates for regions and states other than Yangon are evaluated after adding the transportation cost and the retail reference rates daily cover on the state-run newspapers and are posted on the media and official website and Facebook page of the department on a daily basis starting from 4 May.

The committee is inspecting the fuel stations whether they are overcharging or not. The authorities are taking action against those retailers of fuel stations under the Petroleum and Petroleum Products Law 2017 if they are found overcharging rather than the set reference rate. The committee is steering the oil sector effectively not to have a shortage of oil in the domestic market and ensure price stability for energy consumers. In early August, some fuel stations in regions and states ran out of oil following the surging US dollar.

Some petrol stations were allegedly suspending fuel sales and setting limited sales on the possible shortage of fuel oil, sparking consumers’ concerns and raising fuel prices. They seemed to take advantage of the consumers’ concerns for their benefits, according to the statement released by the Central Committee on Ensuring Smooth Flow of Trade and Goods on 16 August. The committee has assured adequate fuel supply until end-August. It is also working together with Myanmar Petroleum Trade Association to ensure a steady fuel supply for energy consumers to mitigate concerns, the statement mentioned.

The consumers can complain about the halt in fuel sales and limited sales through the contact numbers of the respective regions and states if they find those stations that violate the rules, the committee stated. Nonetheless, fuel prices continued to gain at K2,605 per litre of Octane 92, K2,670 for Octane 95, K3,245 for diesel and K3,330 for premium diesel at the end of August. The CBM also announced on 31 August that it will provide more than US$200 million through the foreign exchange market according to the decision made by Foreign Exchange Supervisory Committee to ease the commodity inflation triggered by fuel price spike. Later, the fuel prices slightly declined. The year-end market data showed that the fuel prices stood at K2,010 per litre for Octane 92, K2,080 for Octane 95, K2,365 for diesel and K2,445 for premium diesel.

Source: The Global New Light of Myanmar

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Republic of the Union of Myanmar
Announcement of Central Committee on Prevention, Control and
Treatment of Coronavirus Disease 2019 (COVID-19)

9th Waxing of Pyatho 1384 ME
30 December 2022

As it is necessary to continuously control infection of the Coronavirus Disease 2019 (COVID-19), it is hereby announced that public requests, orders, notifications and directives (except for easing the restrictions) released by the Union-level organizations and Union ministries up to 31 December 2022 have been extended until 31 January 2023 for prevention, control and treatment of Coronavirus Disease 2019 (COVID-19).

Source: The Global New Light of Myanmar

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Private banks offer hire purchase programmes, auto loans, home loans for seafarers, beneficiaries

Some private banks are offering auto loans to own a car and home loan programmes under hire purchase agreements with low deposits. On 23 December, AYA Bank revealed how the bank buys foreign income of the seafarers with a high exchange rate and introduced the AYA card promotion programme for its debit card, credit card and prepaid card holders, auto loan and home loan programmes, AYA Sompo insurance services and benefits for the beneficiaries of the seafarers, at an event held at headquarters of Myanmar Seafarers Federation.

Additionally, Yoma Bank will also offer the best rate for the seafarer in foreign inward remittance. Opening Flexi Everyday Account of the Yoma Bank, service fee exemption for foreign income remittance and hire purchase system and home loan programme with low deposit and service fee exemption benefits for the seafarers will be provided, as per its statement. The federation will hold an event regarding banking services for seafarers on 30 December 2022.

Source: The Global New Light of Myanmar

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Hydropower and solar energy of Kanyin reservoir to produce 29.9 MW of electricity

Union Minister of Electric Power U Thaung Han, during his inspection tour of the Kanyin reservoir in Ingapu township of Ayeyawady region on 23 December, said that, according to the pre-feasibility studies, 29.9 megawatts of electricity can be produced from hydropower and solar energy from the reservoir.

In addition, the Union minister underscored that the technological needs will be fulfilled with the arrangements of the regional government as soon as possible.

The wind energy project is being implemented in Ayeyawady Region and it should be launched as soon as possible for the socioeconomic development of the region, Union Minister U Thaung Han added. The Kanyin Dam Project was built in the 2002-2003 financial year and was completed in the 2011-2012FY, and the irrigation system was started in the 2017-2018FY.

Source: The Global New Light of Myanmar

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Palm oil prices continue to decline

The delivery order-DO price decreased to K5,150 per viss (a viss equals 1.6 kilogrammes) in the Yangon edible oil market on 24 December 2022. The wholesale reference price of palm oil between 19 and 25 December was K4,415 per viss, indicating a price drop of K100 per viss to the previous week. With the drop of the reference price, the DO price of palm oil also decreased from K5,250 per viss on 20 December to K5,150 per viss on 24 December. The DO price of palm oil fetched K5,100 per viss on the morning of 26 December. Ko Aung Myint, a broker, told the Global New Light of Myanmar-GNLM that the price could be K5,075-K5,050 in the evening due to competitive prices in the market.

Domestically produced two types of palm oil are often sold at lower prices in the market this month compared to imported palm oil. From 19 to 25 December, the price for a tonne of oil at Yangon port was $1,006 and ready-to-pack (18 litres) oil cost $1,156 per tonne. The cost (purchase price) of oil was K4,327 per viss with an average exchange rate of K2,478, according to the relevant notification. The external palm oil dipped from 3,900 Ringgit on 23 December to 3,829 Ringgit on 24 December. Therefore, the reference price slumped again in the last week of December. Most of the buyers are speculating that the external exchange price in the Yangon edible oil market may drop below K5,000 per viss.

The wholesale reference was K4,630 per viss in early December and showed three consecutive weeks of decline. During the three weeks, the edible oil wholesale reference price decreased by K270 per viss. From 28 November to 4 December, the reference price was K4,425, while the DO price was K5,450. On 24 December, the DO price was only K5,150-K5,175 per viss, with a reference price of K4,415. The DO price of imported palm oil declined again by K50 per viss, while the reference price was only K4,360 this week.

It is known that there is speculation in the oil market that palm oil may fall below K5,000 per viss in the external market. Between 15 and 31 August 2022, the wholesale reference price of palm oil was K4,140 per viss, while the retail price in the external market fetched around K9,500 per viss. At the end of December, the reference price stood at K4,360, the DO price at K5,100 and the retail price at only K5,150 per viss. Therefore, during the two periods when the reference price was decreased by K200 per viss, the external exchange price fell by around K4,500 per viss. It is reported that the oil business operators are trading by paying special attention to the market and price situation this month.

Source: The Global New Light of Myanmar

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Fuel prices on uptick trends

Fuel prices in the market have increased gradually, according to the source. On 13 December, the prices stood at K1,795 per litre for 92 Octane, K1,885 for 95 Octane, K2,130 for diesel and K2,205 for premium diesel in the Yangon market. Then, the market showed a gradual price rise and it was K1,970 per litre of 92 Octane, K2,055 per litre of 95 Octane, K2,300 per litre of diesel and K2,380 per litre of premium diesel on 24 December. Therefore, the prices of fuel are increasing by about K170 per litre within two weeks.

The prices are on the rise again as the prices of Singapore-based Mean of Platts Singapore (MOPS) become higher, according to the Supervisory Committee on Import, Storage and Distribution of Fuel Oil. By the end of August, the fuel prices reached their highest at K2,605 per litre for 92 Octane, K2,670 for 95 Octane, K3,245 for diesel and K3,330 for premium diesel. The committee conducts measures to ensure fuel shortages and price stability. Moreover, the Petroleum Products Supervision and Inspection Department released the daily fuel reference prices under the guidance of the Supervisory Committee on Import, Storage and Distribution of Fuel Oil.

The reference rate in Yangon Region is set on the MOPS’ price assessment, shipping cost, premium insurance, tax, other general cost and reasonable profit rate. The rates for regions and states are evaluated after adding the transport costs and the retail reference rates are daily covered in the state-run newspapers and posted on the media and official website and Facebook page of the department daily starting from 4 May. Therefore, the fuel oil stations that sell oil at higher prices than the reference prices are scrutinized and taken action under Petroleum and Petroleum Products Law 2017.

As 90 per cent of fuel oil in Myanmar is imported, while the remaining 10 per cent is produced locally, the oil prices in the market are changing depending on the international market prices. The government maintains the situation to be stable prices that benefit the oil importers, sellers and consumers and distributes at the fairer prices compared to the prices of regional countries. Some countries levied higher tax rates and hiked oil prices than Myanmar. However, Malaysia’s oil sector receives government subsidies and the prices are about 60 per cent cheaper than that of Myanmar. Every country lays down different patterns of policy to fix the oil prices. Myanmar also poses only a lower tax rate on fuel oil and strives for energy consumers to buy the oil at a cheaper rate.

Source: The Global New Light of Myanmar

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Over 500 import/export licences granted at Muse border trade zone in December

The Trade Department under the Ministry of Commerce has been issuing import/export licences at the border trade zone and between 1 and 18 December, a total of 514 licences were granted at the Muse trade zone for Sino-Myanmar cross-border trade, the Ministry of Commerce stated.

Import/export and related business licences can be done through Myanmar Tradenet 2.0 and three licences for exports and 511 for imports of machines and parts, tangerine, stationery, pesticide and other commodities were issued in those days.

To facilitate the National Single Window system, have a single entry in trading and digitize the licensing system and related businesses, the Trade Department under the Ministry of Commerce has officially started the Myanmar Tradenet 2.0 portal from 1 November 2020. The trade value at Muse 105th-mile trade zone totalled U$S1.535 billion, comprising exports worth $1.35 billion and imports worth $182.493 million.

Source: The Global New Light of Myanmar

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CB Bank sets K2,865 for foreign income inward remittance with additional contribution of K40 per dollar

The government of Myanmar provides K30 per dollar (an equivalent amount of foreign currency) in the salary remitted by Myanmar citizens abroad. The authorized CB Bank will add another K10 to this government’s contribution of K30. When their family members withdraw cash, they will get an additional contribution of K40 per dollar and a dollar exchange rate is set at K2,865, the CB Bank notified.

Those additional contributions cover the foreign income by Myanmar citizens including seamen and Myanmar migrant workers. Only the remittance of foreign salary through the authorized banks is entitled to this. In addition to the additional contributions and commission, they are exempted from tax on foreign income inward remittance under the Union Tax Law. The dollar over-the-counter market rate is estimated at over K2,800.

Transaction is made when the customers and sellers agree on the price. The Central Bank of Myanmar notified on 28 October 2022 about this additional contribution by the government for salary remittance of Myanmar citizens abroad from 1 November. The authorized banks for foreign exchange (KBZ Bank, CB Bank and UAB Bank) are adding the additional support fund of the government, as per the respective statements. This move is to support and encourage the Myanmar workers abroad who are earning foreign earnings for the State.

Source: The Global New Light of Myanmar

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Myanmar ships about 150,000 tonnes of rice to Bangladesh under G-to-G pact

According to the Government-to-Government pact between Myanmar and Bangladesh, Myanmar has conveyed over 150,000 tonnes of white rice to Bangladesh, according to the Ministry of Commerce. Myanmar and Bangladesh inked a Memorandum of Understanding (MoU) on rice trade on 8 September this year. According to this MoU, Bangladesh has agreed to buy 250,000 tonnes of white rice and 50,000 tonnes of parboiled rice from Myanmar between 2022 and 2027. In accordance with the MoU, Bangladesh’s Directorate General of Food and Myanmar Rice Federation signed a sales contract for 200,000 tonnes of Myanmar’s white rice to be exported to Bangladesh.

As per the sales contract, Myanmar has exported approximately 15,000 tonnes of white rice to Bangladesh as of 19 December 2022. The remaining will be delivered by the deadline. As per the MoU between Myanmar and Bangladesh on the rice trade, 48 companies, under the supervision of the Myanmar Rice Federation, are to export 200,000 tonnes of rice to Bangladesh with Chinese yuan payment between October 2022 and January 2023. In line with the contract, white rice (ATAP) GPCT Broken STX variety will be delivered. The FOB prices were 2.78856 Yuan per kilogramme and 2788.56 Yuan per tonne.

The Export/Import division of the Trade Department issued 42 export licences worth over 534 million Yuan for 41 companies to convey 191,700 tonnes of rice to Bangladesh. Since 7 September 2017, Myanmar and Bangladesh have engaged in rice trade under the government-to-government pact. That MoU stated that Bangladesh has agreed to buy Myanmar’s white rice (250,000 tonnes) and parboiled rice (50,000) tonnes between 2017 and September 2022. Bangladesh’s Directorate General of Food and MRF signed the sales contracts as per the MoU and Myanmar sent 100,000 tonnes of rice to Bangladesh each in 2017 for the first time and 2021 for the second time, as per the sales contract. 

Source: The Global New Light of Myanmar