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MFF striving for sustainable fishery export growth

by TRADING

Myanmar Fisheries Federation (MFF) is attempting to grow fishery export regardless of the COVID-19 disruption on maritime trade, closure of land borders and fuel oil price instability. Chinese market constitutes about 65 per cent of Myanmar’s fishery exports. The federation is making concerted efforts to achieve the target recorded last year, MFF stated. Despite the open season of offshore fishing, Myanmar’s fishery export industry is facing a series of challenges such as fuel oil price instability, the surge in container shipping rate, the closure of border posts, disruption of maritime trade and the COVID-19 negative impacts.

Consequently, it will harm the export sector somehow in thelong term. The fishing industry is experiencing the oil price hike. A 40-feet container costs US$1,400- US$5,000. As a result of this, some businesses are likely to be suspended. The trade route is required to return to normalcy in order to facilitate the trade. If the border post resumes the trade activity, the trade will go smoothly. The closure of the border posts is triggered by the COVID- 19 threats. The cross-border between Myanmar and Bangladesh is still open for trade.

The federation is planning to export fishery products to Bangladesh. Myanma Port Authority is also ensuring smooth freight flow with non-stop operation. The federation is attempting to tackle these fishery export hurdles, said Dr Toe Nanda Tin, senior vice-president of MFF. The marketable fish products, especially fish, shrimp, eel and crab from Taninthayi and Ayeyawady regions and Rakhine State are primarily exported to foreign markets. The federation is turning to the Bangladesh market with export potentials. MFF is working together with the stockholders in the supply chain to have sustainable export growth.

Source: The Global New Light of Myanmar

On September 13, the Central Bank of Myanmar sold $ 15 million in a foreign exchange auction, with an average exchange rate of 1,750 kyat

by ECONOMY

On September 13, 2021, the Central Bank of Myanmar sold $ 15 million in a foreign exchange auction, with an average exchange rate of 1,750 kyats. On August 25, the Central Bank of Myanmar sold another $ 5 million at a foreign exchange auction, up from $ 28 million seven times in August, according to figures released by the Central Bank of Myanmar. On August 2, 2021, the Central Bank of Myanmar announced a $ 3 million auction. $ 3 million on August 3; $ 4 million on August 4; $ 9.5 million on August 9; $ 12.5 million on August 12; $ 23 million on August 23; It sold for $ 5 million on August 25.

The central bank sold $ 3 million on July 7 at a foreign exchange auction. $ 3 million on the 6th; $ 3 million on the 5th; $ 6 million on the 8th; $ 14 million on July 14; $ 3 million on the 15th; $ 3 million on the 16th; $ 26 million on July 26; $ 27 million on July 27; $ 28 million on July 28; $ 3 million on the 29th; On July 30, it sold for $ 39 million, split 12 times in July and sold for $ 39 million. The Central Bank is conducting a regulatory foreign exchange bid based on its objectives of foreign exchange operations, which are to reduce short-term fluctuations in exchange rates and to supplement the country’s foreign exchange reserves.

Rules for Central Bank Bidding Instructions have been set out and these rules and regulations are in place. Authorized Dealers (AD) Banks, which are foreign exchange bidders participating in the foreign currency auction, in accordance with the instructions. Buying foreign currency with 19 local private banks and 13 foreign bank branches; And sales. The Central Bank of Myanmar’s foreign exchange operations include short-term exchange rate fluctuations; Comparing the exchange rate of Myanmar kyat to US dollar per working day to the previous day exchange rate to reduce the depreciation; By comparison, the percentage devaluation of the Myanmar kyat exceeds the stipulated level (opening a competitive auction for the sale of US dollars, the percentage of appreciation of the Myanmar kyat exceeds the stipulated by the regulation).

Comparing the average Myanmar kyat to the US dollar exchange rate; According to this comparison, the percentage of appreciation of the Myanmar kyat is higher than that set in accordance with the rules and regulations. To buy the foreign currency offered by AD banks between the highest exchange rate and the lowest exchange rate announced by the central bank in the auction. Submissions for sale are purchased and sold by the central bank using the Refinitiv (formerly Thomson Reuters) auction system. The Central Bank of Myanmar (CBM) is holding a foreign exchange auction to reduce the volatility of foreign exchange rates in the short term. Opening an auction to buy foreign currency (dollars) if the percentage of appreciation of the Myanmar kyat exceeds the stipulated rules. 

To buy the foreign currency offered by AD banks between the highest exchange rate and the lowest exchange rate announced by the central bank in the auction. Submissions for sale are purchased and sold by the central bank using the Refinitiv (formerly Thomson Reuters) auction system. The Central Bank of Myanmar (CBM) is holding a foreign exchange auction to reduce the volatility of foreign exchange rates in the short term. Opening an auction to buy foreign currency (dollars) if the percentage of appreciation of the Myanmar kyat exceeds the stipulated rules. To buy the foreign currency offered by AD banks between the highest exchange rate and the lowest exchange rate announced by the central bank in the auction. Submissions for sale are purchased and sold by the central bank using the Refinitiv (formerly Thomson Reuters) auction system. 

The Central Bank of Myanmar (CBM) is holding a foreign exchange auction to reduce the volatility of foreign exchange rates in the short term. To buy the foreign currency offered by AD banks between the highest exchange rate and the lowest exchange rate announced by the central bank in the auction. Submissions for sale are purchased and sold by the central bank using the Refinitiv (formerly Thomson Reuters) auction system. The Central Bank of Myanmar (CBM) is holding a foreign exchange auction to reduce the volatility of foreign exchange rates in the short term. To buy the foreign currency offered by AD banks between the highest exchange rate and the lowest exchange rate announced by the central bank in the auction. Submissions for sale are purchased and sold by the central bank using the Refinitiv (formerly Thomson Reuters) auction system. The Central Bank of Myanmar (CBM) is holding a foreign exchange auction to reduce the volatility of foreign exchange rates in the short term.

Source: Daily Eleven

Domestic gold price falls by K45,000 per tical in two days

by ECONOMY

The price of precious yellow metal falls back on 13 September, with a drop of K45,000 in two days, domestic gold market’s data showed. The price of pure gold metal hit fresh new peaks in the recent days and it reached the highest of K1,900,000 per tical (0.578 ounce, or 0.016 kilogram) on 11 September tracking the dollar gains on Kyat in the forex
market, whereas it dropped to K1,855,000 per tical on 13 September, according to Yangon Region Gold Entrepreneurs Association (YGEA). On 11 September, the association made six decisions, including control of the market rally, permits for the members to secure transportation to and from gold refineries and for holding a large amount of cash.

The spikes in the gold market were attributed to the political developments, high demand in the domestic gold market, shortage of raw gold metals, the price gain in the international market and the Kyat depreciation. The global gold price stood at only US$1,789 per ounce on 13 September, while a US dollar exchange rate was set at K1,734. As a result of this, YGEA urged its members to regulate trade in order to deal with market volatility. To regulate unsustainable rally in the domestic gold market, the association called for the members to make the gold transaction with only immediate payment, avoid the verbal transactions over calls and halt trading outside the Yangon region, according to YGEA.

In January 2021, the gold price was ranged between the minimum of K1,316,000 per tical (28 January) and the maximum of K1,336,000 per tical (6 January). It reached an all-time high of K1,410,000 per tical on 3 February and hit the minimum of K1,340,000 per tical on 2 February. In March, the rate fluctuated between the highest of K1,391,000 (25 March) and the lowest of K1,302,000 (4 March). The price was registered the highest of K1,455,000 (30 April) and the lowest of K1,389,000 (1 April). The price reached an all-time highest of K1,709,000 (12 May) and the lowest of K1,447,000 in May. The price moved in the maximum of K1,575,500 (11 June) and the minimum of K1,543,000 (19 June).

Last month, it fluctuated between K1,562,300 (26 Jul) and K1,587,000 (K1,587,000), the gold traders said. According to gold traders, the local gold reached the lowest level of K1,310,500 (2 September) and the highest level of K1,314,000 (1 September). In October, the rate ranged between K1,307,800 (30 October) and K1,316,500 (21 October). The rate fluctuated between the highest of K1,317,000 (9 November) and the lowest of K1,270,000 (30 November). In December, the pure yellow metal priced moved in the range of 1,280,000 (1 December) and 1,332,000 (28 December). With global gold prices on the uptick, the domestic price hit fresh highs in 2019, reaching K1,000,000 per tical between 17 January and 21 February, crossing K1,100,000 (22 June to 5 August), climbing to over 1,200,000 (7 August-4 September), and then reaching a record high of K1,300,000 on 5 September 2019.

Source: The Global New Light of Myanmar

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Imports plummet to $13.4 bln this FY: MoC reports

by TRADING

The value of Myanmar’s imports nearly the past eleven months of the current financial year 2020-2021 sank to US$13.4 billion from $17.55 billion recorded in the same corresponding period of last FY, the Ministry of Commerce’s data indicated. All the import groups including the consumer, capital, intermediate goods, and CMP businesses plunged in the current FY. The drop in foreign direct investment this year negatively affected the trade. Between 1 October and 27 August this FY, capital goods, such as auto parts, vehicles, machines, steel, and aeroplane parts were brought into the country. Their import value was estimated at $4.33 billion. The figure was over $2.3 billion lower than those values registered in the same period of the previous FY.

Meanwhile, Myanmar imported consumer products worth over $3 billion, including pharmaceuticals, cosmetics, and palm oil. The imports of consumer products showed a slight decrease of $82.7 million compared with the same period in the previous FY. Intermediate goods make up the second-largest share of Myanmar’s imports, with petroleum products and plastic raw materials being the main import items. This year, imports of raw materials plunged to $4.65 billion from $5.79 billion registered during the year-ago period. During the same period, raw materials worth over $1.4 billion were also imported for the Cut-Make-Pack (CMP) garment sector, showing a decrease of $584 million compared with the last budget year.

At present, the CMP garment sector which contributes to 30 per cent of Myanmar’s export sector is struggling because of the cancellation of orders from the European countries and suspension of trading by western countries amid the COVID-19. Therefore, import values of raw materials by CMP businesses have been dropping. At present, the traders have transaction problems triggered by the restriction of the private banks. Furthermore, the pandemic triggered the cargo shipping crisis, a market observer shared his opinion. The top 10 import countries to Myanmar are China, Singapore, Thailand, Malaysia, Indonesia, India, Viet Nam, Japan, the Republic of Korea and the US, as per data of the Ministry of Commerce.

Source: The Global New Light of Myanmar

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Trade deficit shrinks to $154 mln over 11months as import slumps

by TRADING

MYANMAR’S trade deficit in the past eleven months (1 Oct- 27 Aug) of the 2020-2021 financial year narrowed to US$154 million on account of the lower import, according to data provided by the Ministry of Commerce. During the past eleven months, the country’s exports were estimated at $13.2 billion, imports were valued at $13.4 billion this FY. The external trade drastically sank to $26.7 billion from $33.66 billion recorded in the year-ago period. Myanmar’s trade gap was $1.4 billion in the year-ago period, according to data provided by the Ministry of Commerce.

Myanmar witnessed a slump in export and import triggered by the coronavirus impacts this year against the year-ago period. Both sea trade and border trade dropped. The neighbouring countries tighten the border security and restrict the trading in certain border areas. For the maritime trade, disruption in logistic sector, spikes in container rates and banking restriction dragged down the trade. Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods, while it imports capital goods, raw industrial materials, and consumer goods.

The country’s export sector relies more on the agricultural and manufacturing sectors. The Ministry of Commerce is trying to reduce the trade deficit by screening luxury import items and boosting exports. The country mainly imports essential goods, construction materials, capital goods, hygienic materials, supporting products for export promotion and the import substitution. Myanmar’s trade deficit was pegged at $1.3 billion in the 2019-2020 FY, $1.14 billion in the 2018-2019 FY, $1.3 billion in the previous mini-budget period (April- September, 2018), $3.9 billion in the 2017-2018 FY, $5.3 billion in the 2016-2017 FY, and $5.4 billion in the 2015-2016 FY, according to statistics released by the Central Statistical Organization.

Source: The Global New Light of Myanmar

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Four million doses of Chinese vaccines arrive in Myanmar

by COVID

Four million Sinopharm vaccines out of 24 millions purchased from China arrived at the Yangon International Airport yesterday evening. These vaccines will be distributed to respective regions and states via land and air routes with the help of Tatmadaw (Air) starting today.

Officials will vaccinate the people over the age of 65 and 55, people with disabilities, ethnic armed organizations, people with chronic disease and people at IPD camps in addition to the priority groups.

There are 4,944,654 people who get vaccinated until 11 September while 3,239,764 people are fully vaccinated and 1,704,890 people get their first-time vaccination. Total doses of vaccine delivered are 8,184,418. The Ministry of Health also urged the people to get vaccinated without fail, and those who get first jabs to receive second dose on the due date at the nearest vaccination sites.

Source: The Global New Light of Myanmar

The central bank has announced that it will remove the widening gap between the selling price and the buying price, and some traders say the exchange rate fluctuations will not be affected

by ECONOMY

The central bank announced on September 11 that it would remove the widening gap between the selling price and the buying price. The sale of foreign currency issued on August 8; Purchasing The Central Bank has issued a directive to set the CBM Reference Rate at the Mid Rate and the Purchase Price and Purchase Price within the range of 0.8%. The directive was canceled. Licensed banks trading foreign currency.

 The Central Bank of Myanmar said in a statement that the holders of foreign exchange licenses have been notified. Dr Soe Tun, a businessman, said the directive would not affect the value of the dollar traded in the market. In the past, when there was a price tag, the actual price on the board and at the counter was different from the price on the board, he said. It says 1,700 on the board, but it can’t be bought. 

Only people you know are buying and selling. It is 2,000 outside. It is also difficult to buy and sell. With this release, it will be easier to buy and sell because Molo is set as freely as before. It has little to do with price fluctuations. There will be more trade. Currently, the price set by the central bank is one in the foreign exchange market and one in the foreign exchange market. According to the prices on September 11, local foreign exchange counters and banks set the price at around US $ 1,746 per dollar, but the actual market price was between US $ 1980 and 2010.

Source: Daily Eleven

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YRIC endorses over $1 mln worth project, creates 851 jobs for residents

by INVESTMENT

The Yangon Region Investment Committee (YRIC) endorsed one foreign enterprise in the manufacturing sector, with an estimated capital of US$1.095 million, as per the YRIC’s videoconferencing convened at 10 am on 8 September. Yangon Region Chief Minister U Hla Soe, who also acts as chairman of YRIC, the committee members and the investors joined the video conferencing to ensure the foreign capital inflow during the COVID-19 pandemic.

At the meeting, YRIC endorsed one foreign investment business with a total capital amount of $1.095 million in the manufacturing sector and is expected to create 851 local job opportunities. Moreover, they discussed the general issues of the other four companies. To simplify the verification of investment projects, the Myanmar Investment Law allows the region and state Investment Committees to grant permissions for local and foreign proposals, where the initial investment does not exceed K6 billion, or $5 million.

The investors can inquire about the investment and submit a proposal by dialling (01-658263 and 01-658264) of YRIC located on Kaba Aye Pagoda Road, Yankin Township. The proposals worth above K6 billion can contact the Myanmar Investment Commission located on Thitsar Road, Yankin Township via 01-658102 and 01-658103, YRIC stated. The manufacturing sector has attracted the most foreign investments in Yangon Region, with enterprises engaging in the production of pharmaceuticals, vehicles, container boxes, and garments on a Cutting, Making, and Packing (CMP) basis. To date, foreign investments from China, Singapore, Japan, Hong Kong, the Republic of Korea, Viet Nam, India, China (Taipei), Malaysia, the British Virgin Islands and Seychelles are arriving in the region.

Source: The Global New Light of Myanmar

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Border trade down $974 million

by TRADING

The total border trade value exceeded US$8.86 billion as of 27 August in the current financial year (FY), down over $974 million compared with the same period last year, according to the Ministry of Commerce. Between 1 October and 27 August, the total border trade amounted to $8.86 billion, down $974 million compared with the last year’s figure of $9.84 billion.

The country’s export via border checkpoints amounted to $5.83 billion while its import shared $3.03 billion. The trade volume at Must border trade on China-Myanmar border exceeded $4.51 billion, down over $863 million compared with the same period last year. Myanmar has opened 18 border trade camps.

Myanmar mainly exports agricultural products, animal products, marine products, minerals, forest products, manufacturing goods and others to foreign trade partner countries while capital goods, intermediate goods and consumer goods are imported into the country. 

Source: The Global New Light of Myanmar

Over the past seven months, domestic petrol prices have risen by 70 percent to 80 percent depending on the type, and to 1,160 kyats per liter for 95 Octane

by ENERGY

Over the past seven months, local petrol prices have risen by 70 to 80 per cent, depending on the type, and to 1,160 kyat per 95 octon per liter, according to local petrol stations. On September 9, domestic prices of octane 95 Ron were 1,160 kyats per liter; Octane 92 Ron 1140 kyats per liter; 1115 kyats for a liter of diesel; Premium diesel costs 1,110 kyats per liter, according to local petrol stations. On February 2, the local price of petrol was 750 kyats per liter and 750 kyats per liter. Octane 92Ron 625 kyats per liter; Premium diesel 670 kyats per liter.

Diesel costs only 660 kyats per liter, according to figures released by the Myanmar Petroleum Importers and Distributors Association (MPTA). For more than seven months, octane 95Ron 410 kyats per liter; Octane 92Ron 515 kyats per liter; Premium diesel 445 kyats per liter; Diesel prices have risen to 450 kyats per liter. Octane 92 Ron about 80%; Premium diesel and diesel rose by about 70 percent per liter, respectively. Myanmar imports around six million tonnes of kerosene a year, according to the Ministry of Commerce.

In the first seven months of the current fiscal year, imports were just $ 1.2 billion from 2.7 million tonnes, down more than one million tonnes from the same period last year, according to an official from the Ministry of Commerce. In the first seven months of the current fiscal year, imports of kerosene fell by 1,002 million tonnes, down $ 663.347 million from a year earlier. During that period, 1.66 million tonnes of diesel was imported, valued at $ 721.173 million. It was down more than 650,000 tonnes, down more than $ 430 million from the same period last year. More than one million tonnes of oil was imported, valued at $ 536.113 million. It was down more than 350,000 tonnes from the same period last year, valued at $ 227.187 million.

Source: Daily Eleven