Posts in category: ECONOMY

3rd Waxing of Tagu, 1383 ME
3 April 2022

1. The Central Bank of Myanmar has issued this notification in exercise of the authority conferred under sub-section (b) of Section 49 of the Foreign Exchange Management Law.
2. According to the provisions of Section 11, Section 12 and Section 13 of the Foreign Exchange Management Law, the foreign exchange earnings of the locals must be sent back to Myanmar to the foreign currency account opened at the Foreign Exchange Trading (AD) licensed banks and exchange for Myanmar Kyats within one working day.
3. In case of exemption in carrying out in accordance with paragraph (2), it shall be issued separately.
4. Transferring foreign currency abroad must be carried out through the AD licensed banks with the permission of the Foreign Exchange Supervisory Committee.
5. Foreign currency in various foreign currency accounts that have entered Myanmar before the date of issuance of this notification shall also be made in accordance with paragraph (2) of this notification.
6. The Central Bank of Myanmar revokes Notification No. 35/2021 issued on 3-10-2021 with this notification.
7. This notice shall take effect from the date of issue.
8. Failure to comply with this notice will result in legal action under the Foreign Exchange Management Law.

Source: The Global New Light of Myanmar

Under the guidance of the Monitoring and Steering Committee on Gold and Currency Market, the gold trading volume data is being collected, said Chair U Myo Myint of the Yangon Region Gold Entrepreneurs Association (YGEA). The data of the trading volume of the gold and jewellery shops in the Yangon Region and the association’s trading data have to be reported to the Yangon City Development Committee (YCDC).

The committee held a meeting on 12 March and the deputy governor of the Central Bank of Myanmar directed us to collect the actual trading figure of the gold trading in the region, whether it is export to India or Thailand or anywhere else. If the trading data is compiled, the officials concerned will take necessary measures to enhance the gold market to meet the international standard, U Myo Myint elaborated. There is no accurate data on gold exports, he added.

The officials of the committee, subcommittee, Myanmar Gold Entrepreneurs Association and YGEA discussed matters regarding gold trading and export market data on 11 March 2022. The meeting highlighted matters concerning the gold production condition, trading situations, export and domestic trading data, formation of separate teams to conduct the inspection tour to set the standards in line with the international criteria, determining the duties and responsibilities of the pricing, inspecting the trading situations of the importers and exporters along with the related financial institutions and other coordination matters in respect of the subcommittees. 

Source: The Global New Light of Myanmar

The majority of the exchanges are found trading a dollar at unofficial rates of over K2,000 although the Central Bank of Myanmar set the reference exchange rate at K1,778, 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.

Nevertheless, the dollar was traded only between K2,030 and K2,040 on 21 March in the informal financial market. The CBM sold US$95 million at its auction market within three months 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 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 to payment rules or not in the domestic market, proceeding against those unscrupulous traders who intend to interfere with the free and fair operation in the market under the existing laws, bylaws 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 Central Bank of Myanmar (CBM) has sold US$165.62 million for the fuel oil sector, according to the Consumer Affairs Department. Between 15 September 2021 and 4 February 2022, $147.90 million were sold to the oil-importing companies at the CBM’s reference rate, while the Central Committee on Ensuring Smooth Flow of Trade and Goods directly sold $7.72 million for the oil industry and $10 million to Myanmar International Freight Forwarders Association. The CBM sold those foreign currencies multiple times at the exchange rates of K1,753 in minimum and K1,820 in maximum.

Additionally, the Ministry of Commerce in coordination with the Myanmar Petroleum Trade Association carried out a scheme to distribute fuel oil at a fairer rate through the government-sponsored petrol station chains starting from 22 September 2021. The total volume of fuel oil that are sold at very cheap rates is equivalent to the amount that the oil importers directly purchased the foreign currency from the CBM. The companies imported $147.90 million worth of 226 million litres of fuel oil.

Of them, over 224 million litres have been distributed so far and over a million litres are left for sales, said an official of the Consumer Affairs Department. Those oils have to be sold at the reference rate set by the Petroleum Products Regulatory Department. The consumers can complain about overcharging for fuel oil which is sold at the subsidized rate under the public distribution system, the Ministry of Commerce stated. If any overcharging is found, the consumers can complain about it through the Central Committee, Consumer Affairs Department and Myanmar Petroleum Trade Association.

Following the crude oil price rally in the global market and Kyat depreciation against US Dollar at over K2,000, the oil prices hit a peak of K1,830 per litre for diesel, K1,845 for premium diesel, K1,855 for Octane 92 Ron and K1,930 for Octane 95 Ron. The fuel oil was pegged at around K590 per litre for Octane 92, K610 for Octane 95, K590 for diesel and K605 for premium diesel in early February 2021 in the domestic retail market, while the exchange rate stood at K1,330 then. Therefore, Myanmar Petroleum Trade Association is offering special prices for those fuel oil in the regions and states. The special price of fuel in Yangon on 16 March stood at K1,613 per litre for premium diesel and K1,549 per litre for diesel. Normally, Myanmar yearly imports 6 million tonnes of fuel oil from external markets, the Ministry of Commerce stated.

Source: The Global New Light of Myanmar

The Central Bank of Myanmar sold US$79 million to the palm oil importers so that the palm oil can be
distributed at the fairer price, according to the Consumer Affairs Department under the Ministry of Commerce. Starting from 15 September 2021, the CBM has sold the foreign currencies multiple times to the palm oil importing companies at the minimum exchange rate of K1,753 and the maximum rate of K1,820 per dollar as of 4 February. Over 6,000 tonnes of palm oil which is equivalent to $79 million are being sold at the subsidized price. Of 6,000 tonnes, 195.41 tonnes of palm oil are left for sales, said an official of the Consumer Affairs Department.

Myanmar Edible Oil Dealers Association set the palm oil reference rate and the sales volume depending on the CBM’s exchange rate and the imported oil prices of the companies. Consequently, the relevant oil importing companies distribute the palm oil at the reference rate set by the association and have to submit a sales report to the steering committee on the importation and distribution of the edible oil, according to the Consumer Affairs Department. The consumers can complain about overcharging for edible oil which is sold at subsidized rate under the public distribution system, the Ministry of Commerce stated.

If any overcharging is found, the consumers can complain about it through the contact numbers (0943666668) of the Yangon Region Consumer Affairs Department and (09262079105 and 09965136377) of the Myanmar Edible Oil Dealers Association. Tracking the rise in imported oil prices, the retail price of palm oil is shooting up around K7,000 per viss (a viss equals 1.6 kilogrammes) at present. Meanwhile, the Myanmar Edible Oil Dealers Association is selling those palm oil with the mobile market trucks at the subsidized rate of K6,000 per viss. The domestic consumption of edible oil is estimated at one million tonnes a year. The local cooking oil production is just about 400,000 tonnes. To meet the self-sufficiency in the domestic market, about 700,000 tonnes of cooking oil are yearly imported.

Source: The Global New Light of Myanmar

In Myawaddy and Tachileik on the Myanmar-Thailand border, the baht / kyat direct payment will be tested for three months from March 21, according to the coordination meeting on the direct use of baht / kyat in the Thai-Myanmar border trade on March 10. Coordination between relevant departments for the successful implementation of the baht / kyat direct payment system in the border areas of Myawaddy and Tachileik; As for the Piolot Preiod, the three-month period from March 21 was discussed.

In addition, the formation of a support group to facilitate cooperation between departments on the ground; Guidling arrangements for clearing the way for direct use of baht / kyat in cross-border trade for traders are scheduled for the third week of March. To be able to use the baht / kyat market exchange rate and to facilitate the cash withdrawal by exchanging the baht from trade to the Myanmar kyat. Issues related to reporting trade information were discussed.

The Central Bank of Myanmar (CBM) announced on March 3 that it can now use the baht and kyat directly on the Thai-Myanmar border. To increase bilateral trade; To speed up the flow of goods; The statement said that the aim was to increase the domestic currency in line with the objectives of ASEAN Financial Integration, in addition to facilitating the two countries’ payment and settlement system. The statement said that the baht accounts of importers and exporters who will carry out cross-border trade will be allowed to open in Designated Banks, which allow them to use the baht and kyat directly.

Designated banks are required to adhere to guidelines on the use of baht and kyat in border trade between the two countries. Myanmar has a total annual trade volume of about $ 35 billion with foreign countries, accounting for about 30 percent of the total, according to figures released by the Ministry of Commerce. On Myanmar-Thailand border, Tachileik, Myawaddy, Kawthaung, Myeik, Htee-khee, Maw-taung doing the indirect trade while the Myawaddy border trade point is the largest source of trade. In the current five-month Ming Budget, Myanmar-Thailand border trade exceeds $ 2 billion, of which more than $ 1 billion (about 50 percent) is handled from the Myawaddy border trade post alone.

Source: Daily Eleven

Build a 500-ton cold storage plant to store fresh fish, According to the Department of Fisheries, 2.04 acres of land will be leased under the BOT system for shrimp production. Agriculture, Livestock and Irrigation Minister’s BOT system under the Department of Fisheries Survey No. (2/2), Entrepreneurs / companies are invited to submit bids for the construction of a 500-tonne refrigeration plant with a BOT system for the production of fresh and fresh fish and prawns under the BOT system.

Tender proposal and terms and conditions for 10,000 kyats per pair. Administrative department; It can be purchased at Office No. 36, Nay Pyi Taw. Bids will be sold at the Department of Fisheries (Head Office) Nay Pyi Taw during the regular office hours from March 10 to 28, 2022, and an open tender must be submitted there. For more information about the tender, please contact the Department of Fisheries (Head Office); 067-408474. The tender acceptance and scrutiny committee has announced that inquiries can be made at 09-254554347.

From October 1 to February 25, the 2021-2022 fiscal year (Mini Budget) earned more than $ 387 million from fishery exports, up $ 24 million from the same period last year, according to the Ministry of Commerce. In the same period in the 2020-2021 fiscal year, fishery exports earned $ 363.748 million. Compared to the same period last year, as of February 25, the current fiscal year earned $ 24.077 million more than the same period last year.

Myanmar’s fishery products are exported annually to 45 countries, and the meat sector currently exports mainly live animals to neighboring countries across the border. According to the Ministry of Agriculture, Livestock and Irrigation, there is a need for the government and the private sector to cooperate in producing shrimp hatcheries in Myanmar, as shrimp fry are being imported from neighboring countries for commercial shrimp farming. Agriculture accounts for 30 percent of Myanmar’s gross domestic product, with 68 percent of the rural population dependent on the sector, according to the Ministry of Agriculture, Livestock and Irrigation.

Source: Daily Eleven

The average inflation rate for the six months from October 2021 to March 2022 is expected to be 6.67 percent, according to the budget figures for the six months from October 2021 to March 2022, released by the Ministry of Planning and Finance.

The average inflation rate for the period from October 1 to September 30 of the 2020-2021 fiscal year was 1.08 percent for the first quarter from October 1 to December 31, 2020; In the second quarter from January 1 to March 31, 2021, 1.63%; From April 1 to June 30, it rose 5.02 percent in the third quarter and 6.83 percent in the fourth quarter from July 1 to September 30, according to the Central Statistics Office.

The average inflation rate rose for 18 consecutive months from April 2018 to September 2019. Slightly lower in October and November 2019; It rose again in January and February of 2020. April May, June July August September October and November; It dropped again in December.

For the country as a whole, the average inflation rate, calculated on the basis of consumer price in 2012, was 6.83 percent from July 1 to September 30, the fourth quarter of the 2020-2021 fiscal year. Inflation rose 1.81 percent in the fourth quarter from an average of 5.02 percent in the third quarter, according to the Central Statistics Office.

Source: Daily Eleven

The equity market rose in February 2022 against the trading in January, the Yangon Stock Exchange’s price data indicated. A total of 61,435 shares valued at US$282 million by seven listed companies were traded 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, 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 slightly fell to K7,900 for FMI, K2,900 for MTSH, K7,800 for MCB, K19,000 for FPB, K2,600 for TMH, K2,800 for EFR and K4,900 for AMATA respectively in February.

Regardless of the collapse of the stock markets worldwide, the local equities market has been able to continue operating without stopping trading. Additionally, YSX launched a pre-listing board (PLB) on 28 September 2020 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 equity market since 20 March 2020.

Only K4.63 billion valued 887,969 shares by seven listed companies were traded on the exchange in 2021, showing a significant drop of 63 per cent as against 2020, according to the annual report released by the exchange. In 2020, K12.6 billion worth of 1.87 million shares by six listed companies were traded on YSX, whereas over 2.4 million shares from five listed companies, valued at K13.39 billion, were traded on the exchange in 2019. 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

Notication 5/2022

2nd Waxing of Taboung 1383 ME
3 March 2022

1. The Central Bank of Myanmar has hereby issued this notification exercising the power conferred under Sections 17 and 22 of the Foreign Exchange Management Law.
2. The Baht/Kyat direct payment is allowed on the Thai-Myanmar border to boost bilateral trade between Thailand and Myanmar, to facilitate smooth flow of goods, to make easy access to cross-border payment between the two countries and to promote local currency in line with the objectives of ASEAN Financial Integration.
3. The exporters and importers are allowed to open baht accounts at the designated banks for cross-border trade.
4. Therefore, the designated banks are required to adhere to the guidelines for the direct use of Baht/Kyat on the Thai-Myanmar border.
5. This notice shall take effect from the date of the issuance.

Than Nyein
Governor

Source: The Global New Light of Myanmar