Kyat extends slump against Thai Baht

Myanmar Kyat continues to spiral and the exchange rate against the Thai Baht touched a high of K80 in the local forex market, forex price data indicated. In early July, the exchange rate for a Thai Baht was valued only at K60, and 1,670 Baht was exchanged for K100,000. On 15 August, the Baht-Kyat exchange rate was 1/80 and 1,300 Baht was worth K100,000. The plunge in exports at the Myawady border post is a contributing factor to the slumping Kyat value. Thai Baht shortage in the border areas resulted in Kyat depreciation, traders on the Myawady border were quoted as saying.

Of the primary export items at the Myawady border post, corn exports drastically dropped. Although Myanmar earlier exported 150,000 tonnes of corn per month, only 30 per cent of that volume was delivered in July, said U Aye Chan Aung, chair of the Myanmar Corn Industrial Association. 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.

Additionally, foreign currency earnings are set to be converted into local currency at the reference exchange rate of the Central Bank of Myanmar. However, there is a large gap between the regulated rate and the unauthorized rate. This action affected exports of agricultural products and trade dropped. Moreover, Myanmar’s imports on the Myanmar-Thailand border also nearly came to a halt due to the large capital input. Starting 13 August, the authorities concerned have been inspecting and interrogating some money changers accordingly.

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, 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 official directives, illegal foreign currency holding, illegal trade and taking legal actions against price manipulators.

Source: The Global New Light of Myanmar

Myanmar pharmacy body seeks prevention of medicine shortages

As the medicines and essential drugs prices become high in the market, arrangements are being made not to cause medicine shortages, according to the statement of the Myanmar Pharmaceutical and Medical Device Manufacturer Association released on 13 August. It said the association has imported the required medical supplies and urged the pharmaceutical companies, wholesalers and retailers to sell the medicines as usual.

As the prices of medicines become high continuously, the wholesale centres in the Mingala Market shut down as they cannot run properly, according to the sellers. With the changes in the exchange rate and import policy, medicine prices were on the rise starting in early August. The wholesale centres suspend sales and so the retailers face hardships, said Ko Min Min, a medicine dealer. “The prices are drastically high and they suspend the sale temporarily. If we now sell the medicines we bought before the prices were high, we face losses. The more we sell, the more we lose. We don’t get the amount that we want,” he said.

The demand for pain killers and drugs for diabetes, hypertension, heart disease and for kids is on the rise and some medicines are out of stock. “The prices of medicine for diabetes and heart disease are higher about K1,000/1,500 than before per capsule card. We can’t predict how much the prices will go up. Some hospitals face shortages of medicine stocks,” said Daw Tin Win from North Okkalapa Township. The association also urged the entrepreneurs to import the required medicines and medical supplies as quickly as possible as the officials negotiated the proper medicine import policies.

Source: The Global New Light of Myanmar

YGEA set gold price at over K2.1 mln per tical on global gold market trends

As gold price climbs in international markets, pure gold price set by Yangon Region Gold Entrepreneurs Association has gained to over K2.1 million per tical (0.578 ounce, or 0.016 kilogramme). In early August, gold prices stood at only US$1,770 per ounce in global markets. On 13 August, the price jumped to $1,802 per ounce. The domestic gold prices have risen accordingly. On 13 August, YGEA set the precious yellow metal at K2,101,000 per tical.

Nonetheless, the prices reached record-high of around K2.6 million per tical in the grey market.
The rising gold prices are attributed to the effect of the continuous Kyat depreciation in the local forex market. The unofficial exchange rate against the dollar is estimated at around K2,800 in the markets.
The association determined the price depending on the Central Bank of Myanmar’s reference exchange rate of K2,100, said U Myo Myint, chair of YGEA.

Therefore, there is a gap of over K500,000 between the set price of YGEA and the informal market price. Consequently, the cross-border illegal market has arisen again. The soaring safe-haven dollar value against the weakening Kyat in the domestic forex market halted pure gold bar transactions as well, U Myo Myint stressed. Next, the authorities also interrogated some gold traders and currency exchange operators in end-July.

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. The objectives of the committee are inspecting and prosecuting market manipulation, checking if there is a compliance to payment rules or not in the domestic market, proceeding against those unscrupulous traders who intend to interfere in 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

Transport security important for smooth and swift flow of marine products into Yangon market

The waterway transport sector plays a key role in the inflow of various marine products and swift and smooth flow of commodities into the Yangon fish market which is a distribution hub of marine products to Yangon Region as well as to other regions and states on a daily basis. Freshwater and seawater marine products from the Ayeyawady Region flow into two fish markets in Yangon – Central Sanpya Fish Market and Shwepadauk Fish Market. In order to meet the local demand for marine products, freshwater fish products are being produced. But heavy rains may inundate fish farms, causing loss and damage.

Hence, local fish farmers net fish at the fish farms before the monsoon and reduced the number of fingerlings at the farms due to the high prices of aquafeeds. Consequently, the inflow of freshwater rohu and sturgeon into the market declined in July and August less than in the remaining months. Two kinds of fish are taking market shares in local consumption of Yangonites and those from the countryside. Fish farmers transport their aqua products to the Yangon market along Twantay Canal but they unexpectedly face some cases of extortion of marine products and money as robberies committed by unscrupulous persons along the route.

As such, they encounter difficulties in waterway security measures. “In fact, the Central Sanpya Fish Market and Shwepadauk Fish Market are of importance not only for Yangon Region but for marine product consumption of the whole nation. Regularly, more than 300,000 visses of freshwater products and some 100,000 visses of seawater fish products flow into the markets. This month, the volume of marine products dropped in the markets. Although seawater products flow into the market on tidal days, as usual, the inflow process of freshwater fish into the market faces some difficulties with security measures. So, motor schooners do not accept hire for transporting the fish products.

Moreover, the shortage of labour to be assigned to transport fish products is one of the punches on the fish farmers when they pass the Twantay Canal. So, marine products do not flow into the market in competitiveness. After enquiring about the market situation, they decided things whether they should send their products to the market or not. Only when they firmly contact the purchasers will they do their business. As a result, the volume of freshwater fish products declines more its flow into the market,” said U Aung Kaung Kywe from the Myanmar Food Part Co Ltd.

Various freshwater fish species such as sturgeon, rohu, Barbus, tilapia and river catfish and seawater fish species namely tuna, bummalo, catla, and seawater shrimps are primarily sent to the Yangon fish market from fish farms in Twantay and Maubin fish firms. More than 500,000 visses of marine products flowed into the Yangon fish market on a daily basis but more than 250,000 visses of marine products enter the market now. If the road transport for freshwater marine products leading to the Yangon fish market is safe, local fish farmers will have a chance to cut the transport charge, contributing much to the inflow of a larger volume of freshwater products to Yangon. 

Source: The Global New Light of Myanmar

Kyat depreciates against Thai Baht

Myanmar currency Kyat is weakening against the Thai Baht in the local forex market, forex price data indicated. In early July, the exchange rate for a Thai Baht was valued only at K60, and 1,670 Baht was exchanged for K100,000. On 3 August, the Baht-Kyat exchange rate was 1/70 and 1,460 Baht was worth K100,000. The local currency value is moving downwards following a volatile dollar. Kyat devalued against the safe-haven US dollar at approximately K2,500 on the over-the-counter market at the moment.

There is a gap of K700 between the informal exchange rate (K2,500) and the regulated reference rate set by the Central Bank of Myanmar (K1,850). The domestic gold price is gaining on the global cues. The pure gold fetches up to K2.3 million per tical (0.578 ounce, or 0.016 kilogramme) in the domestic market. Therefore, some money exchange operators and gold traders are under investigation. 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 record high of K2.22 million per tical in history.

Under 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 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 in 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

Over 37,000 candidates eligible for Korean Employment Exam in August

More than 37,000 candidates have been eligible to sit for Korean Employment Exam to be held in August, according to the statement of the government’s foreign employment agency POEA-EPS. As of July 27, more than 37,000 eligible candidate names have been released, and the application for taking the exam has been accepted from 7 and 23 July. The remaining candidate names will continue to be released, and those who are eligible to take the exam must submit US$24 for registration fees, which can also be paid in Myanmar Kyats, the statement says.

The exam which will be held from 16 August to 15 October will be for manufacturing and construction workers, and the results will be released on 22 October. The exam for the agriculture and livestock workers will be held from 21 October to 23 December, with the result coming out on 31 December. The EPS-TOPIK qualification test which will allow working in the Republic of Korea through the Employment Permit System (EPS) has been held 13 times in Myanmar.

It is reported that workers who passed the exam are being sent to the Republic of Korea according to the schedule. They must pay K85,000 for the suits and service fees, along with K1,500,000 as a deposit. Of 3,900 qualified workers who have passed the exam, about a quarter was sent to the Republic during the post-COVID-19 period, from 1 January to 30 May 2022. Over the past year, 42,832 people who passed the EPS-TOPIK exam have been officially sent to South Korea, and about 27,000 Myanmar workers are working legally in the country. According to the Ministry of Labour, more people are willing to work in South Korea due to a minimum wage of up to 9,000 won per hour and clear laws for workers.

Source: The Global New Light of Myanmar

K400 billion to be disbursed at soft interest rate

The Minstry of Planning and Finance stated that a plan is underway to disburse K400 billion to local businesses at soft interest rate. According to the press release issued on 23 July, Union ministers and region/state governments are systematically spending the national natural disaster management fund on undertakings of the Covid-19 prevention, control and treatment under the permission of the Covid-19 prevention, control and treatment national central committee.

Till 14 July 2022, the remainng amount of the fund totalled K491.978 billion. Now, as the infection rate of the pandemic much declienes, efforts will be made for surging the State economy in all aspects, according to the press release.

K400 billion from the fund will be disbursed to local businesses at soft interest rate under the supervision of the Ministry of Planning and Finance. According to the Ministry of Health, 11 patients was found with positive result in laboratory test over 3,907 lab samples from 8 pm on 23 July to 8 pm on 24 July, with 0.28 per cent of infection rate.

Source: The Global New Light of Myanmar

CBM stops rumour of reimplementation of FEC system

Central Bank of Myanmar (CBM) denied spreading rumour of reimplementation of Foreign Exchange Certificate which was earlier abolished, according to a notification released by the CBM on 22 July. The Foreign Exchange Management Law was enacted in 2012 and amended in 2015 and 2021 respectively.

Provisions regarding functions and responsibilities of the CBM for forex management, foreign exchange activities, holding foreign currencies and opening forex accounts, the use of Kyat during international transactions, activities of the authorized money changers, purchase, sales and import/export of gold and jewellery, ordinary account and large account transactions are put in to this law.

Therefore, there is no provision related to the issue of FECs in the CBM’s tasks enacted in this law. This being so, reimplementation of the FEC system is just a groundless rumour. The CBM stated that there is no plan to implement this system again according to the Foreign Exchange Management Law.

Additionally, all the foreign currency earned by locals have to be exchanged for local currency at the Central Bank of Myanmar’s reference rate of K1,850 by opening the accounts at the authorized dealers in the country within one working day, according to the CBM’s notification (12/2022) released on 3 April.

The CBM further released a statement concerning companies or institutions that are exempt from this action. Those companies exempted from this have to convert the foreign currencies into local currency at the authorized dealers. Moreover, the CBM denied another baseless rumour of seizing foreign currencies of the foreign account holders (companies, institutions and individuals).

Source: The Global New Light of Myanmar

No service and warranty of Suzuki (Myanmar)
changed despite its operation suspension

Suzuki stated on 20 July that car productions of the Suzuki (Myanmar) Motor Co Ltd and Suzuki Thilawa Motor Co Ltd will be temporarily suspended, however, there will be no change in terms of warranty and service.

The suspension is reported because of delays in the import of car parts to be assembled and manufactured due to current circumstances, although the company is doing its best to address the needs of the customers. The statement also stated the profuse apologies for the delay to deliver the cars to the customers and for not being able to predict the exact time of the delivery.

However, it stressed that the company will fully serve better services regarding the purchased cars and urged customers to understand if due to circumstances any problems occur. Since 2019, 13,000 Suzuki cars have been sold in Myanmar, accounting for 60 per cent of the market.

Source: The Global New Light of Myanmar

Mobile market trucks run in 11 districts on 17 July, offers palm oil price at cheaper rate

Sixteen mobile market trucks operated by 11 companies, in coordination with Myanmar Edible Oil Dealers’ Association, are back to business in 11 districts starting from 17 July in order to offer the palm oil at the subsidized rate to the consumers. The mobile market scheme will cover the remaining townships in the upcoming days. The market prices will be changed according to the reference rates on the weekly basis. Mobile market trucks offer palm oil at the cheaper rate of K4,750 per viss (a viss equals 1.6 kilogrammes) this week in Yangon Region.

Under the guidance of the Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) and the Myanmar Rice Federation, the affiliated associations including Myanmar Rice Traders Association, Myanmar Edible Oil Dealers’ Association and rice exporters are offering staple food at fairer price with the mobile trucks in the respective townships in Yangon Region. The reference wholesale price of palm oil in Yangon market for a week from 11 to 17 July is set at K4,650 per viss, according to the Supervisory Committee on edible oil import and distribution under the Ministry of Commerce. The committee has been closely observing the FOB prices in Malaysia and Indonesia including transportation cost, tariff and banking service and issuing the wholesale market reference rate for edible oil on a weekly basis.

If those retailers and wholesalers are found overcharging, storing inventory intentionally and attempting unscrupulous action to manipulate the market, they will face legal action under the Special Goods Tax Law, MoC released a statement. The Ministry of Commerce is striving for the consumers not to worry over the supply of edible oil. The ministry is also trying to secure edible oil sufficiency, supervise the market to offer the reasonable price to the consumers, maintain the price stability and prevent market manipulation. The domestic consumption of edible oil is estimated at 1 million tonnes per year. The local cooking oil production is just about 400,000 tonnes. To meet the oil sufficiency in the domestic market, about 700,000 tonnes of cooking oil are yearly imported through Malaysia and Indonesia.

Source: The Global New Light of Myanmar