Posts in category: ECONOMY

The shares traded on the Yangon Stock Exchange (YSX) declined in October, with K561 million worth of 99,837 shares of the six listed companies, the YSX’s monthly report indicated. In February 2021, K442 million worth of 77,388 shares were traded on the exchange. The figures extended further drops to K110 million worth of 19,816 shares in March 2021. Then, the market slightly rose in April with K280 million worth of 42,964 shares. The stocks were maintained in the bull market in May with 78,642 shares worth K432.448 million as well. In June, 79,296 shares worth K430.285 million were traded on the exchange. Then, the volume of shares traded in the equity market plunged to 36,855 shares in July 2021 and the trading value also slipped to K198 million.

It climbed up in August 2021 compared with those registered in the last two months, with over K300 million worth of 49,191 shares traded on the exchange. It edged up to a recordhigh in September, with over K825 million worth of 193,353 shares, the YSX’s monthly report showed. Last month, the shares of six 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 K8,900 for FMI, K3,200 for MTSH, K7,800 for MCB, K19,500 for FPB, K2,700 for TMH, K2,950 for EFR and K5,000 for AMATA, respectively. The stock markets worldwide have reported their largest declines since the 2008 financial crisis.

Similarly, the local equities market was also scared by the COVID-19 crash in the previous months, a market observer points out. People like to keep emergency savings and purchase the safe-haven asset gold, rather than make investments amid the COVID- 19 crisis and current political conditions. Unexpectedly, people turned to the stock market when the prices of gold remarkably gained in September. However, the stock market went down in October, he continued. Amid the COVID-19 crisis and political changes, Myanmar’s securities market has been able to continue operating without stopping trading. In 2020, the value of stocks traded on the exchange reached a peak of K1.48 billion in February, whereas trading on the exchange registered an all-time low of K552.9 million in November due to the COVID-19 resurgences in Myanmar, the exchange’s monthly report showed.

A total of K12.6 billion worth of 1.87 million shares by six listed companies were traded on the exchange in 2020, a significant drop compared to 2019. Over 2.4 million shares from five listed companies, valued at K13.39 billion, were traded on the exchange in 2019, according to the annual report released by the exchange. Next, the Securities and Exchange Commission of Myanmar (SECM) has allowed foreigners to invest in the local equity market from 20 March 2020. Furthermore, 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, YSX stated. 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 seminars. The stock exchange has also sought the government’s support to get more public companies to participate in the stock market and help more institutional investors, such as financing companies, investment banks, and insurance companies, to emerge.

Source: The Global New Light of Myanmar

The Central Bank of Myanmar (CBM) sold US$294.8 million at its FX auction rate to the authorized dealers in the past eight months (Feb-Sept) 2021, according to the auction results released by the CBM. Last month, the CBM reportedly sold $50 million on 18 October, 30 million each on 22 and 26 October in the auction market, totaling $110 million which is the largest amount sold in the past eight months. Consequently, the exchange rate dipped to below K2,000 in late October, according to the CBM. Last September-end, a dollar value reached the highest of over K3,000 in history. The CBM, therefore, sold $63 million to the banks in September 2021. In a bid to strengthen the local currency and govern the market volatility, the CBM reportedly sold about 6.8 million dollars on 3 February 2021, $12million in April, $24 million in May, $12 million in June, $39 million in July and $28 million in August in the auction market.

The CBM trades the foreign currency with the authorized private banks under the rules and regulations of the FX auction market. The currency intervention is required to steer the own currency value. It is one of the responsibilities of the CBM to control the price. This is why the CBM practised the foreign exchange intervention. The current political changes in Myanmar and the COVID-19 impacts affect the currency market. Some people want to hold the hard currency during the difficult times, a market observer shared his opinion. The local forex market’s data showed that the dollar exchange rate touched the maximum of K1,345 and the minimum of K1,327 in January 2021. The rate moved in the range of K1,335-K1,465 in February.

It reached the lowest of K1,420 and the highest of K1,550 in March. The rate fluctuated between K1,550 and K1,610 in April. The rate fluctuated between K1,585 and K1,730 in May and it moved in the maximum of K1,595-K1,620 last month. The local forex market’s data showed that the dollar exchange rate touched the maximum of K1,345 and the minimum of K1,327 in January 2021. The rate moved in the range of K1,335-K1,465 in February. It reached the lowest of K1,420 and the highest of K1,550 in March. The rate fluctuated between K1,550 and K1,610 in April. The rate fluctuated between K1,585 and K1,730 in May and it moved in the maximum of K1,595-K1,620 in June. The rate stood at K1,626-K1,670 in July. It hit the lowest of K1,660 and the highest of K1,682 in August. The rate edged up to K3,200 and fell to K1,696 in September. Last month, it stayed between K2,430 and K1,830.

Source: The Global New Light of Myanmar

The exchange rate on US dollar dipped below K2,000 in the local forex market when a US dollar index hovered around 93 points and the Central Bank of Myanmar sold US$30 million to the authorized dealers at its auction rate of K1,800 last Friday (22 October). The CBM exercised foreign exchange intervention to steer the own currency value and sold $80 million to the private banks in October, as per money exchangers. Last September-end, a dollar’s value reached the highest of over K3,000 in history.

The CBM, therefore, sold $63 million to the banks in September. The CBM sold the foreign currency to the prioritized sectors (palm oil, fuel oil and pharmaceuticals) at an auction rate through the authorized banks every week. In August, the CBM reportedly sold $28 million at its auction rate. Kyat is weakening in the local forex market. In a bid to control the dollar gain against Kyat, the CBM sold about 6.8 million dollars on 3 February 2021, $12 million in April, $24 million in May, $12 million in June and $39 million in July in the auction market respectively.

The local forex market’s data showed that the dollar exchange rate touched the maximum of K1,345 and the minimum of K1,327 in January 2021. The rate moved in the range of K1,335-K1,465 in February. It reached the lowest of K1,420 and the highest of K1,550 in March. The rate fluctuated between K1,550 and K1,610 in April. The rate fluctuated between K1,585 and K1,730 in May and it moved in the maximum of K1,595-K1,620 in June. The rate stood at K1,626-K1,670 in July. It hit the lowest of K1,660 and the highest of K1,682 in August. Last month, the rate edged up to K3,200 and fell to K1,696.

Source: The Global New Light of Myanmar

On October 22, 2021, the central bank sold $ 30 million at a foreign exchange auction, with an average exchange rate of 1,800 kyats. On October 18, the Central Bank of Myanmar sold a record $ 50 million a day at a foreign exchange auction, with an average exchange rate of 1,820 kyat. The Central Bank of Myanmar has sold up to $ 264.8 million in foreign exchange auctions from February 1 to October 22, 2021, according to data released by the Central Bank of Myanmar. The central bank sold $ 6.8 million in February 2021 at a foreign exchange auction, but not in March. $ 12 million in April; $ 24 million in May; $ 12 million in June; $ 39 million in July; 28 million in August; It sold $ 63 million in September.

Rules for Central Bank Competitive Auction Instructions have been set out and these rules and regulations are in place. In accordance with the instructions, the foreign currency licensed (AD) banks involved in the foreign currency auction are: three state-owned banks; Buying foreign currency with 19 local private banks and 13 foreign bank branches; And sales. The Central Bank of Myanmar’s foreign exchange operations include short-term exchange rate fluctuations; Comparing the exchange rate of Myanmar kyat with one US dollar to the previous day reference exchange rate to reduce depreciation; By comparison, the percentage devaluation of the Myanmar kyat exceeds the stipulated level (opening a competitive auction for the sale of US dollars, the percentage of appreciation of the Myanmar kyat exceeds the stipulated conditions).

Comparing the average Myanmar kyat to the US dollar exchange rate; By comparison, the percentage increase in the value of the kyat against the conditions set by the government has led to the opening of competitive bidding for foreign currency (dollars); To buy foreign currency submitted by AD banks between the highest exchange rate and the lowest exchange rate announced by the Central Bank in the competitive auction. Submissions for sale are purchased and sold by the central bank using the Refinitiv (formerly Thomson Reuters) auction system. For sale Short-term rise in foreign exchange rates; To reduce overcrowding. Opening a tender to buy foreign currency (dollars) if it exceeds the limit; 

To buy foreign currency submitted by AD banks between the highest exchange rate and the lowest exchange rate announced by the Central Bank in the competitive auction. Submissions for sale are purchased and sold by the central bank using the Refinitiv (formerly Thomson Reuters) auction system. For sale Short-term rise in foreign exchange rates; To reduce overcrowding. Opening a competitive auction to buy foreign currency (dollars) in excess of the limit; To buy foreign currency submitted by AD banks between the highest exchange rate and the lowest exchange rate announced by the Central Bank in the competitive auction. Submissions for sale are purchased and sold by the central bank using Refinitiv (formerly Thomson Reuters) auction system. For sale Short-term rise in foreign exchange rates; To reduce overcrowding. Rise in foreign exchange rate; To reduce overcrowding. Rise in foreign exchange rate; To reduce overcrowding.

Source: Daily Eleven

Yangon Region Gold Entrepreneurs Association (YGEA) is making an effort for paper gold investment at a bank over physical metal, the association stated. The association met the officials of Shwe Bank on 16 October regarding the paper gold scheme.

Paper gold is an asset that reflects the price of gold without physically owning the gold. A gold certificate will be issued by the Bank to the investors, said U Myo Myint, chair of YGEA. The paper gold investment can be seen in international trading. To implement this scheme, the association submitted a report to the Central Bank of Myanmar. Laws and rules are required to be drafted again.

Paper gold trading is a safe investment that guarantees the quality and value of the asset, held by the bank. At present, the price of gold in the domestic market remains in a high trend, tracking the spike in global prices and Kyat weakening on the US dollar. The price of precious pure gold metal touched a high of K1,840,000 per tical (0.578 ounces, or 0.016 kilogrammes), as per the YGEA. The global gold price stood at above US$1,766 per ounce, while a US dollar exchange rate was around K2,000.

Source: The Global New Light of Myanmar

The Central Bank of Myanmar (CBM) sold US$50 million at its FX auction rate of K1,820 on 18 October. The CBM sold the foreign currency to the prioritized sectors (palm oil, fuel oil and pharmaceuticals) at an auction rate through the authorized banks. The CBM sold the US dollars at the set rate to the banks with the authorized dealer license where the companies screened by National Trade Facilitation Committee opened an account. In September, the CBM sold 63 million dollars to the private banks to steer the local currency value.

Last September- end, a dollar value reached the highest of over K3,000 in history. The exchange rate on the US dollar hit around K2,000 in the local forex market at present, as per money exchangers. In August, the CBM reportedly sold $28 million at its auction rate. Kyat is weakening in the local forex market. In a bid to control the dollar gain against Kyat, the CBM sold about 6.8 million dollars on 3 February 2021, $12 million in April, $24 million in May, $12 million in June and $39 million in July in the auction market, respectively.

The US dollar exchange rate stood only K1,330 in January- end, whereas it rose to K2,000 at present, recording an increase of K700 in ten months. The local forex market’s data showed that the dollar exchange rate touched the maximum of K1,345 and the minimum of K1,327 in January 2021. The rate moved in the range of K1,335- 1,465 in February. It reached the lowest of K1,420 and the highest of K1,550 in March. The rate fluctuated between K1,550 and K1,610 in April. The rate fluctuated between K1,585 and K1,730 in May and it moved to the maximum of K1,595-1,620 in June. The rate stood at K1,626- 1,670 in July. It hit the lowest of K1,660 and the highest of K1,682 in August. Last month, the rate edged up to K3,200 and fell to K1,696.

Source: The Global New Light of Myanmar

The central bank of Myanmar (CBM) needs to stabilize dollar exchange rate, said U Win Myint, chairman of the Myanmar Petroleum Trade Association (MPTA). The main thing is the dollar exchange rate to be stable in the market. If the authorities can arrange this matter, it would be fine. Now people are only looking to buy US dollars in the foreign market, with almost no one willing to resell. That’s why, it would be good if the CBM could manage a stable market system to deal with this situation. The authorities are not talking about to sell them at low price. The exchange rate should be selling at a reasonable price, said U Win Myint.

The domestic fuel oil price hike is attributed to the devaluation of Kyat in the foreign market. Currently, the US dollar exchange rate still reached a record high in Myanmar of around K2,000 per dollar. The fuel oil was pegged at around at 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. Then, it remarkably climbed up to K1,455 for Octane 92, K1,490 for Octane 95, K1,465 for diesel and K1,470 for premium diesel on 26 September 2021, according to the local fuel oil market.

There is a remarkable price gap of K800 per litre, according to the local fuel oil market. Starting from 22 September, Myanmar Petroleum Trade Association (MPTA), in cooperating with the Ministry of Commerce have sold fuel oil at fair prices, is equivalent to the amount that the oil importers directly purchased the foreign currency from the Central Bank of Myanmar, aiming to offer reasonable rate, according to the association. The association sold about 44,500,000 litres of fuel oil from 22 September to 13 October. And, about 8.9 million litres remain to be sold in the market. Myanmar imports around 6 million tonnes of fuels yearly, according to the Ministry of Commerce.

Source: The Global New Light of Myanmar

The Central Bank of Myanmar announced on October 12 that it will allow the trading of Chinese Yuan and Japanese Yen.

In accordance with Directive No. (16/2021) issued on 12 October, Directive No. (6/2011) issued to licensed banks and non-bank organizations engaged in foreign exchange trading; (7/2011). In addition to the five foreign currencies allowed to buy and sell in accordance with (16/2012) and (17/2015), it is also allowed to buy and sell Chinese RMB and Japanese Yen.

In Myanmar, US dollar, Euro dollar, Singapore Dollar, Malaysian Ringgit, Thai baht, and the Japanese yen have also been allowed to trade in foreign currency. All Banks with Authorized Dealer License All banks with Money Changer License; It has been distributed to all non-bank companies with the Money Changer License.

Source: Daily Eleven

Press Release

The State Administration Council approved and issued the Union Budget Law for the six months from October 2021 to March 2022 as the State Administration Council Law No 28 on 30 September 2021. The law came into effect on 1 October 2021.

Source: The Global New Light of Myanmar

Press Release

The State Administration Council approved and issued the Union Taxation Law as the State Administration Council Law No 27 on 30 September 2021. The law came into effect on 1 October 2021.

Source: The Global New Light of Myanmar