Posts in category: ECONOMY

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

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

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

The Central Bank of Myanmar released a list exempted from exchange regulations. The Foreign
Exchange Supervisory Committee held a meeting regarding Notification 12/2022 of the CBM issued in April. The list included the Woori Bank Representative Office and foreign accounts at the Myanma Foreign Trade Bank, Panjab National Bank, Yangon Representative Office, China National Oil Corporation (Myanmar Branch), Thilawa and Dawei SEZs management committee companies, Kyaukpyu SEZ Development Committee and Kyaukpyu SEZ Deep Seaport Company. The companies with ten per cent and above foreign investment, foreign direct investment and businesses in SEZs are also exempted from the exchange regulations.

Source: The Global New Light of Myanmar

Myanmar hosted the 7 th Mekong-Lancang Cooperation Foreign Ministers’ Meeting on the morning of 4 July 2022 at Aureum Palace Hotel in Bagan. The meeting was co-chaired by U Wunna Maung Lwin, Union
Minister for Foreign Affairs of the Republic of the Union of Myanmar and Mr Wang Yi, State Councilor and
Foreign Minister of the Peoples’ Republic of China. Mr Prak Sokhonn, Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation of Cambodia, Mr Saleumxay Kommasith, Deputy Prime Minister and Minister of Foreign Affairs of Lao PDR, Mr. Don Pramudwinai, Deputy Prime Minister and Minister of Foreign Affairs of Thailand and Mr Bui Thanh Son, Foreign Minister of Viet Nam attended the meeting.

During the meeting, the Ministers reviewed the work done in the past and discussed the future direction of the cooperation. They also exchanged views on the ways and means to address the current challenges. At the meeting, Union Minister U Wunna Maung Lwin stated that collective efforts with solidarity under the Mekong-Lancang Cooperation framework would be the best means to address current and future challenges as per the theme of the meeting; “Solidarity for Peace and Prosperity”. He also mentioned having close cooperation for the prevention and control of infectious diseases including COVID-19 for regional health security and thanked China for the assistance rendered to Myanmar in the fight against COVID-19.

The Minister stressed prioritizing the cooperation for the economic revitalization and support of the “Global Development Initiative” of China as it effectively responds urgent needs of the Mekong-Lancang region. He highlighted the importance of regional peace and stability as a basis for sustainable development, and support the “Global Security Initiative” of China. The Union Minister pointed out the need to enhance cooperation in the area of non-traditional security including suppression of transnational crime, illicit drug production and trafficking, illegal weapon trafficking and anti-terrorism. He also supported the establishment of the Mekong-Lancang Disaster Management Cooperation Mechanism for the improvement of the disaster risk reduction capacity of six member states.

He also touched upon the other areas of cooperation such as water resources, agriculture, production capacity, power generation and renewable energy. In the meeting, Mr Wang Yi, State Councilor and Foreign Minister of the Peoples’ Republic of China discussed the future directionunder the Mekong-Lancang Cooperation which includes promoting strategic leadership for sustainable development, expanding agriculture cooperation, to promoting green development, to enhancing cooperation on digital innovation and strengthening people-to-people exchanges. The State Councilor also explained the plan for future cooperation under the MLC framework including the plans to enhance cooperation in agriculture, water resources, digital economy, space cooperation, human resources and public health.

The Foreign Ministers of Mekong countries also discussed the matters to be included in the future work of Mekong-Lancang Cooperation. The meeting issued the Joint Press Communique’ and four thematic statements in the areas of agriculture, disaster management, custom, and mutual learning among the peoples of the Mekong-Lancang region. After the meeting, all Foreign Ministers of Mekong-Lancang Cooperation attended the opening ceremony of the “Mekong-Lancang Cooperation National Coordination Unit Building” built at the premises of the Ministry of Foreign Affairs, Nay Pyi Taw. The two Co-chairs, Foreign Ministers of Myanmar and China, also made a Joint Press Conference on the outcomes of the meeting. Mekong-Lancang Cooperation was established in 2016 with an aim to assist regional efforts to achieve sustainable inclusive development and narrow development gaps in the region while promoting peace and prosperity. Cambodia, China, Laos, Myanmar, Thailand and Viet Nam are the members of the Mekong-Lancang Cooperation.

Source: The Global New Light of Myanmar

The Kanbawza Bank announced on 9 June that cash can be withdrawn at 47 KBZ ATMs in four cities, including Yangon. In Yangon, a maximum amount of K300,000 per week can be extracted from the ATMs located at the Kamayut Branch-1-2U, Sule Pagoda Road Branch, Kyaukmyaung Market M-1, 9th-Mile (U3), KTL-M-2, MICT Park Branch (U2), U Wisara Road, Junction City Branch, Sakura Residence, City Mart 6th-Mile, Ocean 9th-Mile, Ocean East Point, Yankin Centre and Super One Kyaikkasan and Hledan Centre. In addition, customers can also withdraw cash from their MPU Debit (ATM card), or by the mBanking Cardless Withdrawal at designated KBZ ATMs in Mandalay, Nay Pyi Taw and Taunggyi. The announcement also said that the list of the expanded ATMs which can issue cash will be announced in a timely manner. Currently, 15 places in Yangon, ten places in Mandalay, 13 places in Nay Pyi Taw and nine places in Taunggyi are set to withdraw cash from ATMs.

Source: The Global New Light of Myanmar

Telenor Myanmar will be renamed Atom, according to a statement from Telenor Myanmar. TELENOR MYANMAR LIMITED was renamed ATOM MYANMAR LIMITED on May 30, the statement said.

The change in name of the company will reflect the aftermath of the transfer of ownership and will continue to create greater business opportunities for organizations and individual customers with better telecommunications services, enhancing support into a wider market, Telenor said in a statement.

The name change will not affect the services, Telenor said. Telenor Myanmar, formerly owned by Norway-based Telenor Group, was sold in March this year to M1 Group in Lebanon for $ 105 million. Telenor Myanmar was taken over by M1 Group and its local partner, Shwe Vyin Phyu, with 49 per cent owned by Shwe Vyin Phyu.

Source: Daily Eleven

The unofficial exchange rate against the US dollar stands at over K2,000 on the over-the-counter market although the Central Bank of Myanmar (CBM) set the reference exchange rate at K1,850, according to local forex traders. To strengthen the Kyat value in the local forex market, the CBM set the exchange rate margin within 0.5 per cent of the reference rate for the transaction, selling or buying, according to a notification issued by the CBM on 9 November. Consequently, financial institutions including the banks and informal money exchanges set a dollar value at K1,781 for buying and K1,786 for selling.

Consequently, financial institutions including the banks and informal money exchanges set a dollar value at K1,850 for buying and K1,855 for selling. Nevertheless, the dollar was traded only between K2,058 and 2,068 on 1 June in the informal financial market. The CBM sold US$95 million at its auction market within three months this year for edible oil, fuel oil and pharmaceutical sectors, to govern the market volatility. A total of $443.8 million were sold at an auction rate in 2021 as well. Last 28 September 2021, a dollar value hit an all-time high of over K3,000 in the black market and consequently, the pure gold reached a record high of K2.22 million per tical (0.578 ounce or 0.016 kilogramme) 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 the trade facilitation. The objectives of the committee are inspecting and prosecuting market manipulation, checking if there is compliance with payment rules 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 procurement of foreign currency, illegal trade and taking legal actions against price manipulators. Furthermore, the officials concerned will crack down on those people involved in charging a percentage for money withdrawals at banks as shadow money.

Source: The Global New Light of Myanmar

The price of domestic palm oil is rolling back again, according to the market data. After Indonesia’s ban on palm oil export is lifted, the price slid again in the global oil-producing countries. The reference rate in the Yangon market for a week from 23 to 29 May is set at K5,500 per viss (a viss equals 1.6 kilogrammes), according to the Supervisory Committee on edible oil import and distribution under the Ministry of Commerce. The rate fell from the reference rate of K6,025 per viss for a week ended 15 May.

The figures show an increase of over K500 per viss within a week. The committee has been closely observing the FOB prices in Malaysia and Indonesia including transport costs, tariffs and banking services and issuing the wholesale market reference rate for edible oil on a weekly basis. 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 a reasonable price to the consumers, maintain the price stability and prevent market manipulation.

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. On 9 May, to ensure the edible oil security, peanut and sesame exports were temporarily blocked, according to the Trade Department under the Ministry of Commerce. The domestic consumption of edible oil is estimated at one 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