Posts in category: ECONOMY

Edible oil dealers told the Global New Light of Myanmar (GNLM) that there might be changing market conditions in Yangon edible oil market in early September 2022. At present, the prices of peanut oil, sesame oil and sunflower oil are surging. The palm oil prices stayed between K8,500-K9,700 per viss. In the second week of September, the prices of palm oil slid to K8,500-K8,600 per viss. Traders speculated on further drop in prices. The palm oil reference price in Yangon fell to the lowest of K3,525 per viss in early August. Thereafter, the price gradually went up according to the reference rates issued on a weekly basis. The reference price touched a high of K5,220 for a week ending 11 September.

The reference price for a week from 13 to 19 September is still not revealed on 11 September. However, the prices of palm oil in the wholesale market drastically dropped. On 11 September, the palm oil was priced at K8,500-K8,600 in wholesale markets. They are sold at K8,000 only at oil tanks, citing the market reports. Therefore, there is a price difference of K2,800 between the reference price and the prices set by distributors. There is also a large gap between the reference price and the wholesale price. On 12 August, the wholesale price K8,600 per viss was around K5,000 higher than the reference price K3,525. At that time, the main distributors offered the same price as the reference price although it was hard to buy the palm oil.

In early August, the mobile market trucks with subsidized price schemes sold the palm oil at only K3,700 per viss while the wholesale price was estimated at K8,600 per viss. Some unscrupulous businesspersons resold them with a profit of K1,500-K2,000. Some fried food businesses bought the edible oil from those sellers as they are K1,500-K2,000 cheaper than the wholesale prices. It is a win-win situation for both parties, Daw Hla Mu, a fritter seller from Kamayut Township, told the GNLM. The consumers are anticipating the changing market conditions. In the previous months, the mobile market trucks sold them at the cheaper rate yet there is a limited supply and quo

ta. The wholesale price is about K4,000 higher than the reference price, Ko Myint Lwin, a trader who delivers palm oil to other regions and states from Nyaungpinlay and Bayintnaung markets, told the GNLM. The wholesale price is doubled compared to the reference price. Majority of the consumers cannot get access to the subsidized scheme of mobile market trucks. They are forced to buy the palm oil at around K10,000 per viss, the GNLM quoted Daw Khaing who lives at a dormitory in Hlinethaya Township, as saying. As the price movement is likely to happen in the coming days, traders do not make a big purchase when the price is decreasing. The consumers also expect to see palm oil and vegetable oil bottles in the shelves of city marts.

Source: The Global New Light of Myanmar

Ooredoo (Myanmar), a telecom operator in Myanmar, is to be sold to Singapore-based Nine Communications Pte Ltd for $576 million, announced on the Ooredoo website. In addition to the business value, the company will receive a total equity value of $162 million, according to the announcement.

At present, the board of directors has agreed, and the transaction will be carried out in line with Myanmar’s procedures. It is also reported that Ooredoo Myanmar, which is the third largest telecommunication operator in Myanmar, had around 15 million users by 2020.

Ooredoo shares rose 4.6 per cent in the market after news of the transaction was announced and departmental approval was in a pending stage. The increase is the highest one in Ooredoo’s share value since mid-August last year, according to Bloomberg News.

Source: The Global New Light of Myanmar

The equities market sees the highest trading in August 2022 with 109,809 shares worth K370 million, the Yangon Stock Exchange’s monthly price data indicated. The stock trading value of seven listed companies on the Yangon Stock Exchange (YSX) amounted to K246.9 million with 72,843 shares in July, the Yangon Stock Exchange’s monthly price data indicated.

Trading of 61,435 shares valued at K282 million was recorded on the exchange in January 2022 and the trading volume rose to 80,291 shares in February, with an estimated value of K414.9 million. A total of 52,408 shares with an estimated value of K233.634 million were traded on the exchange in March. The trading value slightly rose to K276 million with 53,059 shares traded on the exchange in April. The equities market saw K314 million worth 55,024 shares traded in May and K200.63 million worth 40,062 shares in June, according to the monthly report of the YSX.

At present, shares of seven listed companies — First Myanmar Investment (FMI), Myanmar Thilawa SEZ Holdings (MTSH), Myanmar Citizens Bank (MCB), First Private Bank (FPB), TMH Telecom Public Co. Ltd (TMH), the Ever Flow River Group Public Co., Ltd (EFR) and Amata Holding Public Co., Ltd. (AMATA) were traded in the equity market. The share prices per unit were closed at K7,300 for FMI, K2,450 for MTSH, K6,800 for MCB, K18,000 for FPB, K2,300 for TMH, K2,450 for EFR and K4,900 for AMATA respectively in August. Regardless of the collapse of the stock markets worldwide, the local equity market has been able to continue operating without stopping trading.

Additionally, YSX launched a pre-listing board (PLB) on 28 September 2020 in order to provide unlisted public companies with fund-raising opportunities and build a bridge toward listing on YSX. Next, the Securities and Exchange Commission of Myanmar (SECM) has allowed foreigners to invest in the local equities market since 20 March 2020. The YSX was launched four years ago to improve the private business sector. It disseminates rules and regulations regarding the stock exchange and knowledge of share trading through stock investment webinars and training courses.

Source: The Global New Light of Myanmar 

According to market reports, domestic gold prices are falling due to the announcement that gold coins will be sold.

The reference price statement of the Yangon Region Gold Entrepreneurs Association mentioned that for the first time this year, the reference price dropped below K2 million per tical.

The Ministry of Natural Resources and Environmental Conservation issued a press release on 1 September 2022, saying that it plans to sell gold coins weighing one tical, 0.5 tical, and 0.25 tical respectively.

Following the announcement, the Yangon gold market index reached K1,996,000 per tical on 2 September 2022. The price of one tical was over K3 million in the market. 

Source: The Global New Light of Myanmar

According to foreign currency dealers, the central bank’s reference remittance rate is set at K2,100 per US dollar, but in the foreign exchange market, it is around K3,500 per dollar. The Central Bank of Myanmar has issued a statement to set the foreign currency exchange rate within the Central Bank reference rate ± 0.3% starting from 10 August. Therefore, those related to the dollar business, including exchange counters and banks, set the buying price of one dollar at K2100 and the selling price at K2,106.

Although, in the external market, the buying price of one dollar was around K3,400 and the selling price was around K3,500 on 3 September. In the last few days, the foreign market rose to more than K4,500 per dollar, while the domestic gold price rose to a record high of K37,000,000 per tical. Therefore, the Central Bank of Myanmar has been selling dollars to sectors that need US dollars through foreign exchange bidding to control the increase in dollar prices. In 2021, the Central Bank of Myanmar sold $443.8 million in a foreign currency competitive auction.

At the end of September last year, when the local currency market rose to a record high of over K3,000 per US dollar, the domestic gold price rose to a record high of K2,220,000 per tical. Therefore, the Central Committee on Ensuring Smooth Flow of Trade and Goods is working to ensure that there are no delays or difficulties in domestic and foreign trade activities. As the stability of the gold and currency markets is very important, it aims to support the activities of the central committee on the one hand.

Under the command of the central committee, the gold and currency market will be monitored to ensure the stability of domestic gold and currency prices. The Monitoring and Steering Committee on the Gold and Currency Market was established on 17 December 2021. The task of the committee is to speculate on the local gold market, look into transaction lists as necessary to verify and identify purchases, check whether the rules of payment issued by the Central Bank of Myanmar are followed and take action under the existing laws, rules, regulations, orders and directives. Relevant officials will identify and take effective actions over illegal holders of foreign currencies and illegal traders and market players. 

Source: The Global New Light of Myanmar

Order No 61/2022
7th Waxing of Tawthalin 1384 ME
1 September 2022

Appointment and Duty-Assignment of Minister of Yangon Region

The State Administration Council has appointed and assigned U Myo Myint Aung to the duties
of Minister for Economy of the Yangon Region government under Section 419 of the Constitution.

By Order,
Aung Lin Dwe
Lieutenant-General
Secretary

Source: The Global New Light of Myanmar

On August 31st, the domestic gold price in the external market was around 37 lakh per tical, which had risen to a record, dropped to around 30 lakh on September 1, leading a lot of resale, according to the gold dealers. On September 1, the Yangon Gold Association set the reference price at 2001,000 kyats per tical, while the domestic gold price in the foreign market was around 3200,000 kyats. It is believed that the gold market first opened.

After that, on September 1st at 2:30 p.m., the domestic gold price in the external market reached 30 lakh and fell again. On August 31, the Yangon Gold Association set a reference price of 20,210,000 kyats per kyat, but the domestic gold price in the external market rose to a record high of around 37 lakh. Last August 31, the price of bark sawn started at around 3030,000 per kyat and reached a record high of 3120,000 at noon on August 30. On August 30th, around 3:00 p.m., bark gold rose to around 3,175,000 kyat per kyat in the foreign market.

As for the record price, the gold price reached 26,000,000 per kyat on August 12th, and reached a record high of 27,000,000 in the morning on August 13, and over 28,000,000 in the afternoon. From 2016 to 2021, there have been several record gold prices in the country. On August 13, 2019, Kyat 1,237,000, on September 5, 2019, Kyat 1,315,000. 1335500 kyat on August 7, 2020, February 6, 2021
1,420,000 Kyats per day.

The price of gold exceeded 800,000 kyats in 2016, 900,000 kyats in 2017, 100,000 kyats in 2018, 1100,000 kyats and 1200,000 kyats in 2019, and in September 2019, it rose to over 1,310,000 kyats. On February 6, 2021, it reached a record high of 1,420,000 kyats. The price of gold is set based on the foreign exchange rate, but it is known that most of the gold shops only sell at the market price. In actual purchase, payment is made only at the external market price.

Source: Daily Eleven

Yangon Region Entrepreneurs Association (YGEA) agreed on 29 August 2022 to make a sales report according to the actual market price. The decision was made following the meeting of the Monitoring and Steering Committee on the Gold and Currency Market and also with the officials involved in gold refining businesses in Yangon, Mandalay and Mawlamyine cities on 27 August 2022. YGEA settled this under the guidance of the officials concerned, YGEA Chair U Myo Myint told the Global New Light of Myanmar (GNLM).

“Our association set the gold reference price calculated on the Central Bank of Myanmar’s reference exchange rate of K2,100 for a dollar, while the gold market price was determined on the exchange rate of K3,000 in the unofficial forex market. This action implied a transaction with the actual market price which was calculated on the dollar exchange rate over-the-counter-market as the retail shops are also making transactions with the market price instead, the GNLM quoted him as saying. Consequently, a market report to the related department must be done as per the actual market price.

“Earlier, YGEA created a voucher with the reference price. Traders can buy gold at the YGEA’s set price. However, they resell the gold at a higher price. Now, we will make a voucher using real data,” he continued. The authorities concerned also want the daily market report, he added. “Gold is locally mined. The officials want the real data for the gold transaction. It does not indicate taxation. The data on the amount of gold acquired by smelting and refining businesses will be forwarded to the related department,” U Myo Myint elaborated.

On 29 August, despite YGEA’s set price at K2,021,000 per tical (0.578 ounce or 0.016 kilogramme), pure gold fetched approximately K2.8 million per tical in the markets,” the association stated. The price rise is attributed to the Kyat depreciation against the safe-haven US dollar. The exchange rate against a US dollar is worth over K3,200 in the unofficial forex market. During the end of September 2021, a dollar value hit an all-time high of over K3,000 in the gold exchanges and consequently, the pure gold reached a high of K2.22 million per tical.

Under the guidance of the Central Committee on Ensuring Smooth Flow of Trade and Goods, the Monitoring and Steering Committee on the Gold and Currency Market was formed on 17 December 2021 as gold and currency market stability play a crucial role in trade facilitation. The objectives of the committee are inspecting and prosecuting market manipulation, checking if there is compliance with payment rules 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

Those online businesses involved in illegal foreign currency trading will face a strict action under the rules of the Foreign Exchange Supervisory Committee, the Central Bank of Myanmar issued a notification on 27 August. Furthermore, unregistered social media sites spared public concerns with exaggerating messages for the fuel oil, exchange rate and foreign currency reserve. They posted highly exaggerated stories on social media stating that shortage of foreign currency will push the exchange rate to devalue the local currency rate and shortage of fuel oil will drive the price up.

The department concerned, fuel importers and banking institutions are working together on the fuel price to decline and easy process to get foreign currency. Therefore, the CBM’s statement mentioned not to worry about that and not to trust manipulators. Those online businesses executing illegal foreign currency trading will face legal actions under the existing rules of the committee. At present, Fed interest rate hike in recent days made the dollar strengthen. The exchange rate of other currencies against the safe-haven dollar is depreciating.

In a bid to strengthen the local currency and support economic growth, the governments of the world countries are governing the currency markets with fiscal policies, foreign reserve, tax exemption and increased government spending. Myanmar is also stepping up for economic growth and financial stability with trade and financial policies amid the fluctuation of global oil prices and global trade imbalance. The CBM set the reference exchange rate for the US dollar at K2,100, whereas the dollar is valued at over K3,000 in the unofficial FX market. The CBM has directed a 0.3 per cent trading band to fix the floor and ceiling exchange rates. However, there is a gap of K1,000 between the reference rate and unofficial rate in the local forex market.

Source: The Global New Light of Myanmar

Onion wholesale prices inched higher to K3,000 per viss in Bayintnaung Wholesale Centre in a week ended 23 August 2022. Kyukok potato variety and palm oil wholesale prices dipped last week. The chickpea price rose and price changes are recorded for black gram and pigeon peas.

Rice
In the week ended 23 August 2022, the prices of both high-grade and low-grade rice slightly increased. The wholesale rice prices per bag were K85,000-93,000 for Pawsan from the Shwebo area, K70,000 for Pawsan from Myaungmya and Pathein areas, and K68,000 for Pawsan from the Pyapon area, K53,000 for Pawkywe variety, K50,000 for short matured rice (90 days) and K42,000 for rice grown under multiple cropping.

Chickpea, black gram and pigeon pea
On 24 August, pulses price stood at K1,843,500 per tonne of black gram (Fair Average Quality/RC), K2,148,500 per tonne of black gram (Special Quality/RC) and K1,970,000 per tonne of pigeon pea (red gram) RC, whereas Chickpea prices rose to K4,200-4,400 per viss in the wholesale markets.

Palm oil
The wholesale reference price of palm oil in the Yangon Region is set at K4,860 per viss between 22 and 28 August. The price is up by K720 compared to the rate recorded in the previous week.
The palm oil wholesale prices in the markets declined from K10,000 to K9,500 per viss on 22 August. The palm oil price was estimated at K102,000 per jerrycan.

Onion
Approximately 120,000 visses of onions were supplied to Bayintnaung Wholesale Market on 23 August. Onion wholesale prices climbed to K2,300 -2,900 per viss of onions from Seikphyu Township and K2,450-3,000 per viss of onions from Monywa Township. The prices soared from K1,550-2,300 per viss depending on varieties and size on 13 August. The prices are up by K700 per viss in eight days of the market.

Potato
On 23 August, potatoes moved in the range of K1,450-2,200 per viss depending on qualities, while potatoes from China were valued at K2,400 per viss. The price of potatoes from Shan State is higher than those from China.

Garlic
On 23 August, garlic produced in Aungban town, Shan State fetched K2,400-4,000 per viss depending on the size in the wholesale markets, while Kyukok garlic variety peaked at K3,850 per viss.

Chilli pepper
On 23 August, the prices of chilli pepper moved in the range of K13,000 and K15,000 per viss depending on different varieties (Moehtaung, long red chilli (Panye) and green chilli).

Source: The Global New Light of Myanmar