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Myanmar’s corn exported to external markets by sea and via land borders

The price of corn declined amid weak demand from foreign trade partners, according to Yangon Region Chambers of Commerce (Bayintnaung Wholesale Centre). The price has been stable at K1,300 per viss since the end of January. The price moved slightly down by K20 per viss on 25 February. At present, the domestic market has a bustling trade activity. Myanmar sends corn to China and Thailand via border posts.

Myanmar shipped corn to China, India, Thailand, Viet Nam and the Philippines, according to Myanmar Corn Industrial Association. China is purchasing Myanmar’s corn through cross-border trade under the opium substitution programme. Legitimate corn trade between Myanmar and China commenced at the end of 2022. A total of 112 companies have been given the go-ahead for corn exports.

Thailand gives green light to corn imports under zero tariff (with Form-D), between 1 February and 31 August. However, Thailand imposed a maximum tax rate of 73 per cent on corn imports to protect the rights of their growers if the corn is imported during the corn season of Thailand. 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, 65 per cent of export earnings (US dollars) of the corn have to be exchanged according to the reference rate of the Central Bank of Myanmar (K2,100). Nonetheless, there is a large gap between the regulated rate and the unauthorized rate of the US dollar (over K2,880). Nonetheless, as per the meeting 66/2022 of the Foreign Exchange Supervisory Committee, export earnings of some items can be made in Chinese Yuan and Thai Baht in addition to the US dollar.

The CBM’s notice dated 18 November takes effect on those export items; various pulses (green gram, black gram, chickpea, pigeon pea), edible oil crops (peanut, sesame seeds), corn, rubber, fishery products (fish, shrimp, crab, eel) and livestock products (live cattle, hides, frozen meat, dried meat). The traders need to apply for a licence to make Yuan or Baht payments.

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 30 days, the CBM announced.

Myanmar exported 2.3 million tonnes of corn to foreign trade partners in the 2020-2021 financial year. The majority of them were sent to Thailand and the remaining went to China, India and Viet Nam. At present, corn is cultivated in Shan, Kachin, Kayah and Kayin states and Mandalay, Sagaing and Magway regions. Myanmar has three corn seasons- winter, summer and monsoon. The country produces 2.5-3 million tonnes of corn every year. 

Source: The Global New Light of Myanmar

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Online appointment system for passports resumes on 26 Feb

The online appointment system for applying for passports and passport renewals is to be restarted on 26 February after a system repair, Myanmar Passport Issuing Office issued a statement.

On 24 February, a total of 8,529 applicants were recorded in the system and made online payments after filling in a form with their personal information. Nonetheless, some faced errors and did not receive the appointment date after making payments, the office stated.

They can check the appointment date on the home page of the website by putting their name and the citizenship scrutiny card number. After the system repair, it will resume on 26 February. Thanks to public cooperation, the pilot project of the system was successful, as mentioned in the statement.

Source: The Global New Light of Myanmar

Kyat depreciates at K2,880 against US dollar despite reference exchange rate

Kyat weakened to K2,880 against the US dollar in the unauthorized market despite CBM’s reference rate of K2,100. Kyat depreciation against greenbacks persists at K2,860 in the grey market although the Central Bank of Myanmar set the reference exchange rate at K2,100. CBM has 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 are instructed to set a dollar value at K2,094 for buying and K2,106 for selling. However, the over-the-counter Kyat-dollar exchange rate was K2,865 for buying and K2,880 for selling on 25 February. Investigation and Prosecuting of market manipulation to hike the exchange rate in the local forex market with the malicious rumours will be undertaken, according to the Central Bank of Myanmar’s statement released on 10 February.

Some exporters, importers and banks are attempting to raise the exchange rate owing to the rumours. The statement called for bank institutions to govern the market and investigate those fraudsters who circulate rumours. The CBM released a notice that the exporters, importers and banking institutions are asked not to elevate the exchange rate. Those banking institutions that do not abide by financial regulations will face legal action as well. Last August, a dollar value hit an all-time high of over K4,500 in the grey market. Consequently, the CBM sold dollars at its auction market for the sectors in need, to control the soaring dollar. A total of $443.8 million were sold at an auction rate in 2021 as well. 

Source: The Global New Light of Myanmar