CBM discusses rupee/kyat tradesettlement mechanism

The Central Bank of Myanmar organized a briefing on the rupee and kyat trade settlement mechanism to start rupee/kyat direct payment using the Special Rupee Vostro Account (SRVA) for bilateral trade between Myanmar and India in Nay Pyi Taw yesterday.
During the meeting, Governor Daw Than Than Swe of the Central Bank of Myanmar talked about the activities of CBM aiming at boosting the bilateral trade with neighbouring countries, facilitating the bilateral transaction and trading, reducing the use of US dollars and exchange rate risk and promoting the use of local currency. She added that the rupee/kyat payment working committee was organized to implement the rupee/kyat trade mechanism.
The CBM held meetings with the Indian Embassy to Myanmar, the Reserve Bank of India, the Department of Financial Services and the Ministry of Finance and approved Joint Concept Note Paper and Standard Operating Procedures (SOPs).
Moreover, the guideline for payment procedures under the Special Rupee Vostro Account (SRVA) has already been released, and the payment can be made starting in February. The briefing will also be organized for the merchants by cooperating with UMFCCI and the Indian Chamber of Commerce. She also mentioned the benefits of implementing rupee and kyat direct payment in various sectors.
Then, the designated banks for rupee and kyat payments, such as UAB, CB bank PCL, and Punjab National Bank, explained the rupee/kyat trade settlement mechanism. Attendees participated in the discussion, and the governor concluded the meeting.

Source: The Global New Light of Myanmar

Over 230 licences for gemtrade set to expire in March 2024

MORE than 230 licences for gem trade are due to expire in March 2024, according to a notification from the Myanma Gems Enterprise.

Those entities holding gems and jewellery trading licences, manufacturing licences for finished gems and carvings and rough gemstone and finished products trading licences issued by the Myanma Gems Enterprise under the approval of the Ministry of Natural Resources and Environmental Conservation are required to proceed to the renewal process three months before the expiry date. They must renew them at least one month before the expiry.

Additionally, they can notify the Myanma Gems Enterprise of winding down a business with one month’s notice before ceasing the operation.

Licence renewal applications can be processed at the Myanma Gems Enterprise (Nay Pyi Taw), Gems Museum in Yangon and Mandalay Office, mining departments in Mogok, Lonkhin/Phakant, Mongshu and Myitkyina areas, in line with the rules and regulations.

Those businesspeople holding expired licences in 2020 and 2021 were urged to reinstate them with the relevant departments by 31 December 2023. Failure to renew the gem trading licence is bound to face revocation, as notified by the Myanma Gems Enterprise on 22 September 2023.

Soure: The Global New Light of Myanmar

Kyat depreciation exceeds K3,500 at over-thecounter market

KYAT weakened against the surging greenback at over K3,500 on 25 January at the over-the-counter market after easing around K3,450 for the past three weeks.

Meanwhile, the reference exchange rate of the Central Bank of Myanmar is K2,100.

On 5 December 2023, the Central Bank of Myanmar allowed authorized dealers (private banks) to operate forex exchanges freely as per the market rate determined by supply and demand market forces. Additionally, the CBM notified that outward remittance must comply with the rules and regulations of the Foreign Exchange Management Committee.

The US dollar hit a high of K4,000 in the grey market on 19 August 2023.

Under Section 9 of the Foreign Exchange Management Law, only those entities holding foreign exchange dealer licences are allowed to deal in foreign currency and traveller’s cheques. Those holding foreign currencies without valid licences and permits will face legal actions under the law, according to the CBM’s notification released on 21 August 2023.

Notification 7/2014 dated 30 September 2014 issued by the Central Bank of Myanmar affirmingly stated that under Paragraph 15 of the Foreign Exchange Management Law, domestic residents can keep US$10,000 in maximum or equivalent amount of foreign currencies for six months if those foreign currencies that have been unused for over six months have to be exchanged in local currency at the market price through the authorized dealers or deposited into bank accounts.

Those illegally holding foreign currencies are to face legal actions under the Foreign Exchange Management Law, the CBM warned again.

Source: The Global New Light of Myanmar

K 30 to 200 million cars sell better now in Myanmar auto market

Vehicles priced between K 30 million and 200 million are selling better in the current market, according to U Kyawswa Tun Myint, secretary of the Myanmar Automobile Manufacturers And Distributors Association.

With sales stagnating in early December, the market started to pick up from the second week of December and it has now increased, he explained.

“The current automobile market is quiet with regular sales and purchases – no rise or fall in prices. But, the price of some small cars with higher demand increased by a few percentage. Sales have increased when compared to the early December last year,” he said.

Vehicles priced from K 30-35 million to K 100-150-200 million are selling better and sales of more expensive cars are present, but not frequent, said U Kyawswa Tun Myint.

“It has increased by a certain percentage. Sales didn’t stop in December. There were some sales. Now, the number of sales is increasing more than before. The price of some small cars rose by a few percentage. Not many. If compared to early December, there were more frequent sales,” he said.

Source: The Global New Light of Myanmar

Myanmar’s current FY export highlights: Key sectors, earnings, and top partners

Statistics released by the Trade Policy Division of the Department of Trade under the Ministry of Commerce revealed that the garment and natural gas sectors generated the highest export earnings between 1 April 2023 and 5 January 2024 of the 2023-24 financial year.
As of 5 January 2024, Myanmar has earned US$10.918 billion from exports during this financial year. Breaking down the details, garment exports stand as the highest earner with $3.308 billion, followed by natural gas exports with $2.543 billion.
Daw Cho Thet Mu, Deputy Director of the Trade Policy Division of the Department of Trade, stated, “Garments and natural gas exports are the primary contributors to Myanmar’s export sectors. In the first nine months of this financial year, $5.851 billion was generated from garments and natural gas exports, representing over half of the total earnings from all exports. Other significant contributors include black gram exports at $540 million, rice and broken rice exports at $490 million, corn exports at $380 million, fish exports at $260 million, green gram at $210 million, raw rubber exports at $150 million, pigeon pea at $110 million, and tissue-cultured banana exports at $90 million”.
The top ten export items that have generated the most income within the first nine months include garments (finished products), natural gas, black gram, rice and broken rice, corn, fish, green gram, raw rubber, pigeon pea, and tissue-cultured banana.
The report further indicates that, during this financial year’s mentioned period, Myanmar’s top ten countries primarily exported were Thailand, China, Japan, India, the United States, Germany, Poland, Spain, South Korea, and Italy. 

Source: The Global New Light of Myanmar

Myanmar National Airlines welcome cargo plane with ceremony

The ceremony to welcome the Boeing 737-800 Freighter aircraft of Myanmar National Airlines was held at Yangon International Airport yesterday afternoon.
The cargo plane, (9M-WCA), Flight No 3G005, departed from Kuala Lumpur, Malaysia, and arrived at Yangon International Airport at 3:25 pm, where officials from Myanmar National Airlines conducted a welcome ceremony.
The aircraft will be used for cargo transport flights of Myanmar National Airlines and will be able to carry about 22 tonnes of cargo, as well as dangerous goods that cannot be transported on regular flights.
Boeing 737-800 Freighter aircraft No 9M-WCA is planned to expand cargo transport flights from Yangon to Southeast Asian countries.

Source: The Global New Light of Myanmar

Solar panels outsell generators in recent sales surge

SOLAR panels are currently sold more than generators, according to electronic stores. The market has been low at present, but there are more solar panel buyers, said an electronics store owner.
“It has been a couple of months that the market has been low. We normally sell about K30-K40 million a day, sometimes about K20 million. Now the sale has just K8-K10milion recently. There is no sale of generators but solar panels,” he said. People who can afford more buy solar panels that can run air-conditioners. Including batteries that are used with solar panels, other devices have been in high demand in the market, said another electronic store owner.

“At our shop, the battery has also been in high demand. Buyers are from Yangon as well as from other regions and states. The sale of solar panels is larger than the generator sale. Buyers bought small-sized panels previously, but now there are customers for big-sized panels. Our shop is oriented towards the non-Yangon market. Because most of the buyers are from other regions and states,” he said.

Source: The Global New Light of Myanmar

Local and foreign tourist arrivals in Myanmar increase again in 2023, with further improvements expected

U Hla Myint, deputy permanent secretary of the Ministry of Hotels and Tourism, said that the number of local and foreign tourists had increased back in 2023 and was expected to rise further.

As of November 2023, there were 8.85 million local travellers and over one million foreign tourists.

“Foreign tourist arrivals in 2020, 2021, 2022 and 2023 are 0.9 million, over 0.1 million, over 0.2 million and over 1 million respectively. Most tourists came from China and Thailand. Many Thais visited Myanmar for pilgrimage. We can say that the prospect looks better. The number of local travellers reached 8.85 million by November 2023. That number is larger now. We expect more to travel in 2024,” he said.

For tourism sector development, union-level responsible persons have visited the destination areas and met with operators and respective local governments to promote tourism while also communicating with private organizations to develop foreign tourism industry, said U Hla Myint.

“The ministry alone cannot do for tourism development. We need the cooperation from various departments. Myanmar Travel Association and Myanmar Hoteliers Association, including Myanmar Tourism Federation, also need to participate in the cooperation. Especially, the private sector needs to make more efforts. From the government side, we are doing coordination, relaxation and measures for easy visa. We need to continue our efforts to maintain the momentum,” he said.

Source: The Global New Light of Myanmar

Myanmar entrepreneurs invited to attend Bharat TEX 2024

According to the Myanmar Garment Manufacturers Association (MGMA), Myanmar entrepreneurs, especially from the garment industry, are invited to participate in the Bharat TEX 2024, a global textile mega event, to be held on 26-29 February in New Delhi.
Organized by the Indian Ministry of Textiles, the event is said to be a valuable platform for global industrial businesses. Exhibitions, knowledge-sharing sessions, talks on the respective category, G2G and B2B meetings and networks, product launch ceremonies, pavilions for mutual benefits and exchanges for various sectors, and other activities will be involved at the event.
In addition, the participants and visitors from other countries can study the Indian culture, costumes and traditions at the event. Potential purchasers of Indian textiles, importers, and exporters are projected to exchange information and make a wide network through the event.
Myanmar entrepreneurs from the garment industry involved in the Buyer Delegation Visit led by the MGMA will have a chance to stay three nights in New Delhi free of charge. Event organizers arranged a gala dinner, shuttle to and from the hotel, the airport and the exhibition. However, the potential participants will have to spend the expenses for airport tickets, the MGMA informed.

Source: The Global New Light of Myanmar

Prompt repair and action taken against closed YPS card readers on YBSs

If machines on YBS bus lines which provide YPS card payment service are closed, and there are  reports  along with vehicle number and bus line number, YPS will check check or repair them and take immediate action in cooperation with respective bus lines, according to Yangon Payment Service-YPS.

YPS responded to a passenger’s comment on its Facebook Page about some YBS buses having closed card readers.

“We have cooperated with respective bus lines in cases of closed readers on YBS bus lines. And we have carried out check or repair at once and taken prompt actions if you have recorded vehicle number and bus line number,” the page replied.

YPS added that it will try to ensure better services.

In order to be convenience of paying bus fares for YBS passenger, YBS card as well as YBS QR code payment service which enables to pay bus fares by mobile phone are available.

YPS QR code payment service was launched for YBS 13, 55, 57 on 11 January, for YBS 63 on 18 January, for YBS 42 and 65 on 19 January, for YBS 22 and 64 on 20 January, for YBS 111, 133 and 134 on 22 January.

Source: The Global New Light of Myanmar