Posts in category: ECONOMY

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

The Central Bank of Myanmar-CBM issued a statement dated 16 August 2022 that exporters can use 35 per cent of export earnings or sell them to authorized dealers (banks) or make remittances to others. According to the CBM’s notification dated 5 August 2022, exporters have to convert only 65 per cent of the hard currencies they earned into local currencies.

Therefore, they can utilize the remaining 35 per cent themselves or sell the dollars to AD or transfer them to others. Regarding foreign accounts of the exporters at the banks, 65 per cent of earnings must be exchanged for local currencies within one working day.

Banks must conduct transactions off the remaining 35 per cent for the use of exporters or remittances or selling. Those entities (company, institutions and individuals) must sell them to ADs or use themselves within 30 days of earnings. Exporters must seek approval from the Foreign Exchange Supervisory Committee to carry out cross-border transactions.

Source: The Global New Light of Myanmar

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

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

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

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

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

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

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