CBM to govern export earnings to be deposited into local bank accounts

The Central Bank of Myanmar (CBM) will steer private sectors to ensure that the foreign currency earned from exports will be deposited in the local bank accounts, the CBM’s governor Daw Than Than Swe said. On 20 March, the governor made that remark at a meeting held in Nay Pyi Taw with the companies that fail to deposit export earnings.

According to Sections 18 (A) and 38 (B) of the Foreign Exchange Management Law and directive 27/2021, exporters to Asian countries must deposit their export income within 45 days from the starting day. Those shipping goods to countries outside Asia must deposit income within 90 days.

The Central Committee on Ensuring Smooth Flow of Trade and Goods, the Ministry of Commerce, the Bureau of Special Investigation and the Working Group on facilitation of Trade and Goods are monitoring whether there is actual export income into the local bank account or not. Export earnings are one of the main foreign capital inflows. It also plays a pivotal role in stabilizing the forex market. Strong compliance of the export companies to the Foreign Exchange Management Law, rules and regulations will facilitate money flows. 

Source: The Global New Light of Myanmar


Diesel price tumbles near to seven-month low in late March

The current retail price of diesel dropped to a seven-month low in late March, said a truck owner. On 22 March, the retail prices were up by K75 per litre for Octane 92 and K60 for diesel. On 7 August 2021, the prices stood at K1,615 per litre of Octane 92 and K1,970 for diesel. On 21 March 2023, retail reference prices for Yangon Region were K1,815 per litre of Octane 92, K2,050 for Octane 95, K2,000 for diesel and K2,080 for premium diesel.

The current diesel price is near the low price recorded seven months ago. Meanwhile, the Octane price is still up by K350 per litre compared to that recorded in August 2021. At present, transportation sectors see launching ceremonies of Electric Vehicles (EVs). It could cut fuel consumption to a certain extent.

Following the dip in world crude oil prices, fuel oil prices sank to below K2,000 per litre. Diesel prices plunge so the freight forwarding businesses save some cost. The public is a little unknown of the price decline. Nonetheless, those engaged in the transportation sectors and agriculture industries blamed the price increase of fuel oil along with other inputs such as fertilizer. 

Source: The Global New Light of Myanmar


Gold spot price elevates YGEA reference price to over K2.34 mln per tical

Yangon Region Gold Entrepreneurs Association hikes reference rate to over K2.34 mln per tical (0.578 ounce or 0.016 kilogramme) with the gold spot prices rising. On 1 March, gold spot prices hit US$1,833 per ounce and YGEA’s price was K2,159,500 per tical. As the gold spot price rallied to $1,989 per ounce in the international market, the reference price of the YGEA jumped to K2,343,300 per tical on 18 March. The figures indicated an increase of $156 per ounce and over 180,000 per tical within three weeks. Despite the YGEA’s reference price, pure gold climbed to K2,980,000 per tical in the unofficial market, showing a large gap of over K630,000 per tical with the reference price.

YGEA calculated the price depending on the Central Bank of Myanmar’s reference exchange rate of K2,100, with some addition, while the US dollar is exchanged at K2,870 in the unofficial forex market. The gold spot prices and dollar exchange rates influence the domestic gold price. The soaring dollar exchanging at over K4,500 drove the pure gold price up to a record-high of K3.7 million per tical in late August 2022. For the gold price to decline, the Ministry of Natural Resources and Environmental Conservation has been selling gold ingots under the competitive bidding system in Yangon, Mandalay and Nay Pyi Taw.

With an aim at reducing gold prices, the YGEA and Mandalay Region Gold Entrepreneurs Association sold gold bullion supplied by the executive members and the members as well.mUnder 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 21 January 2022 as gold and currency market stability play 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. 

Source: The Global New Light of Myanmar


CBM revokes forex licences of 20 companies including Myanmar National Airlines

Twenty money changers including Myanmar National Airlines have got their forex licence revoked starting from 14 March as they failed to comply with the rules and directives issued by the Central Bank of Myanmar (CBM), according to its Board of Directors meeting. They are Oake Khaung Travels & Tourism Senjo Royal Myanmar, Dawei Popular, Zam Myo, Phyo Thet, Sky Bound, Myanmar MCG Corporation, Htwe and Htwe Family, Won Won, United Eleven, Tun Yama, Myanmar Alinka Hotel Group, Cartel, Super Phoenix, Golden Falcon Shipping, Fairness Travels & Tours, Yadana Bon Travels & Tours, Myanmar National Airlines, Dewant Financial Loan Microfinance and Treasure Su.

The CBM set the reference exchange rate at K2,100, while a US dollar was exchanged at K2,880 in the unofficial market. 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 17 March. There is a large price difference between the reference rate of the CBM and the unofficial market rate. However, there is no way to set the new price, as per the notification released on 15 January.

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 will 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, injecting a total of $443.8 million in the markets in 2021. 

Source: The Global New Light of Myanmar


Octane surpasses diesel prices

The prices of Octane exceeded diesel in the retail market on 16 March 2023, tracking the positive global cues. The fuel prices were K2,150 per litre of Octane 92, K2,235 for Octane 95, K2,135 for diesel and K2,215 for premium diesel in Yangon markets. On 16 March, the prices stood at K2,041 per litre of Octane 92, K2,124 for Octane 95, K2,031 for diesel and K2,105 for premium diesel. The crude oil price plunged to a 15-month low at US$67.55 per barrel.

In August 2022, the oil prices surged to K2,605 per litre for Octane 92 and K3,245 for diesel. The diesel price is way higher than the Octane price. The price of diesel became lower than Octane on 16 March. The price decrease of diesel will facilitate freight forwarding businesses. Since May 2015, the Octane price has been cheaper than diesel. In 2008, diesel price was around K300,000 per barrel.

The price exceeded K79,000 per barrel on 21 February 2009, Ko Soe Min, a freight forwarder, told the Global New Light of Myanmar (GNLM). Diesel is primarily used in freight forwarding businesses, generators and machinery. The price drop might save some cost. Sharp fall in crude oil prices on positive global cues weight on the domestic fuel market as well, and market observers shared their opinions. 

Source: The Global New Light of Myanmar


Yangon licence to be issued to only EVs imported for surrendering old cars with Yangon licence

The Road Transportation Administration Department has announced that it will issue Yangon licences to electric vehicles (EVs) imported for surrendering old cars with Yangon licences.

RTAD will register EVs under the existing laws, regulations, orders and directives. Some of the first-batch EV cars are used as taxis in Yangon Region and Nay Pyi Taw. As a pilot project, some domestic vehicle-importing companies are allowed to import 3,000 EVs without having to pay duties and taxes.

The construction of EV charging stations is underway in Yangon, Nay Pyi Taw, Mandalay and along the Yangon-Mandalay Expressway, and is slated to be completed by the end of March.

Source: The Global New Light of Myanmar


Myanmar carries out trade worth $32.549 mln via Tachilek, Kawthoung borders in Feb

Myanmar’s cross-border trade with neighbouring Thailand through Tachilek and Kawthoung points was estimated at US$32.549 million, the Ministry of Commerce’s statistics indicated. Last month, the trade value through the Tachilek border totalled $12.573 million, including exports worth $6.268 million and imports valued at $6.305 million.

Tachilek border achieved 83.82 per cent of the trade target. The figures showed a decrease of $1.282 million in exports and an increase of $0.653 million compared to those registered in the corresponding period last year.

The border trade through the Kawthoung checkpoint amounted to $19.976 million in February, with exports worth $17.537 million and imports worth $2.439 million. The trade value was down by $9.003 million from the year-ago period. Myanmar saw a rise of $5.785 million in the Tachilek border last month from January, whereas the border trade was up by $1.566 million from January. 

Source: The Global New Light of Myanmar


Weekly market update of dry groceries at Bayintnaung Wholesale Centre

During the week ending 14 March 2023, the prices of Kyukok garlic, black gram, pigeon pea and chickpea went up, whereas the prices of sugar and palm oil declined in the Bayintnaung Wholesale Centre.
Yangon’s commodity trading hub saw the entry of 2,364,000 visses of onions in 14 days this month, with an average supply of 210,000 visses per day. The prices moved in the range of K1,050 and K1,850 per viss depending on the quality, size and producing areas (Seikphyu and Myittha) on 14 March.
On 14 March, the prices stayed at K3,200-4,000 per viss depending on varieties and qualities, whereas Kyukok garlic fetched K4,300 per viss.
The wholesale prices of local potatoes moved in the range between K1,300 and 1,900 per viss depending on producing areas.
Chilli pepper
The wholesale prices of chilli peppers were K11,000-12,500 per viss for long chilli pepper and Moehtaung variety. The prices of bell peppers from the Sinphyukyun area and delta regions were K14,500-16,000 per viss respectively.
The prices stood at K52,000-53,000 per bag for summer rice grown under the intercropping system, K57,000 for low-grade short-matured summer rice (90 days), K49,000-50,000 per bag of low-grade Ngasein rice variety, K68,000 for Pawsan rice from Bogale, K71,000 from Pyapon, K73,000 from Myaungmya, K85,000 for Pawsan rice from Shwebo area respectively.
Palm oil
The wholesale reference price of palm oil in the Yangon Region showed a small increase of K35 this week. The reference price for a week from 13 and 19 March is set at K4,635. Palm oil is priced at US$1,053 per tonne in the global market. However, the wholesale market price dropped to K6,500 on 14 March from K6,900 per viss on 9 March.

Source: The Global New Light of Myanmar

Male hand showing R-Registered trademark on wooden block.

Trademark Law to be effective from 1 April 2023

The Trademark Law enacted in 2019 will come into effect from 1 April 2023, according to the official notification. The Ministry of Commerce will receive filing for a trademark from the effective date.

The centers will be opened to receive trademark applications in Yangon city and Nay Pyi Taw. This law will promote investment and commerce by protecting the trademarks and interest and legal rights of the owners.

It also helps elevate the brand’s value and penetrate global markets, Yangon Region Chief Minister U Soe Thein said at an awareness event for the Trademark Law. Myanmar is a member of the World Trade Organization and World Intellectual Property Organization. 

Source: The Global New Light of Myanmar


Edible oil prices vary in Yangon market despite reference price

Yangon’s edible oil market has seen two different prices since some news reports that there was no more oil in the oil tank and that people had to buy edible oil at the price of K6,600 per viss from oil hoarders came out in the market. The wholesale price of edible oil was K7,000 per viss at the shops on 9 March while some wholesalers sold at K6,050 per viss to regular customers. Even though the relevant authorities announce the reference wholesale price of palm oil weekly, the wholesale price was more than K2,000 higher than the reference wholesale price from mid-February to the beginning of March.

On 10 March, the palm oil was sold at K6,050 per viss at the Nyaungpinlay market and K6,400 per viss at the Bayintnaung market, a buyer said. An oil trader said that the wholesale price of oil at the Bayintnaung market went up to K6,800 per viss on 11 March. The demand for palm oil is weak this week due to consumers who bought palm oil at a price of more than K7,000 per viss. Therefore, it is known that the price has not been increased yet. The palm oil price was cheap in some regions while it was high in Yangon.

The price of palm oil including the delivery fee to the store was just K6,400 per viss in some regions on 7 March and K6,350 per viss on 8 March, a grocery seller, Ma Than Myint told the Global New Light of Myanmar (GNLM). On 8 March, 10,326 tonnes of oil entered the Thilawa port and 5,500 tonnes of oil entered the Hteedan port in Kyimyindine Township. According to the information that the wholesale price will drop from over K7,000 to K6,000 per viss, the palm oil was sold at K6,050 per viss in the Yangon oil market. However, it is reported that only a few outlets sell at the above price.

Source: The Global New Light of Myanmar