Posts in category: ECONOMY

KYAT weakened against the surging greenback at over K3,500 on 25 January at the over-the-counter market after easing around K3,450 for the past three weeks.

Meanwhile, the reference exchange rate of the Central Bank of Myanmar is K2,100.

On 5 December 2023, the Central Bank of Myanmar allowed authorized dealers (private banks) to operate forex exchanges freely as per the market rate determined by supply and demand market forces. Additionally, the CBM notified that outward remittance must comply with the rules and regulations of the Foreign Exchange Management Committee.

The US dollar hit a high of K4,000 in the grey market on 19 August 2023.

Under Section 9 of the Foreign Exchange Management Law, only those entities holding foreign exchange dealer licences are allowed to deal in foreign currency and traveller’s cheques. Those holding foreign currencies without valid licences and permits will face legal actions under the law, according to the CBM’s notification released on 21 August 2023.

Notification 7/2014 dated 30 September 2014 issued by the Central Bank of Myanmar affirmingly stated that under Paragraph 15 of the Foreign Exchange Management Law, domestic residents can keep US$10,000 in maximum or equivalent amount of foreign currencies for six months if those foreign currencies that have been unused for over six months have to be exchanged in local currency at the market price through the authorized dealers or deposited into bank accounts.

Those illegally holding foreign currencies are to face legal actions under the Foreign Exchange Management Law, the CBM warned again.

Source: The Global New Light of Myanmar

The opening ceremony for the showroom of MSME products on the e-market platform was held yesterday at the MSME Development Centre in Yangon Region. The showroom aims to foster the development of Micro, Small, and Medium Enterprises (MSMEs), expand markets for MSME products, and align with the evolving digital system.
The event was attended by Vice-Chairman of the MSME Development Working Committee, Union Minister for Industry Dr Charlie Than, Patron of the Yangon Region MSME Development Agency Chief Minister of Yangon Region U Soe Thein, officials from the Yangon Region government, and other relevant personnel.
Union Minister Dr Charlie Than stated, “Visitors can view products made with raw materials from respective states and regions in one place. It is designed to be a hub for connecting market networks to promote the country’s economy.”
According to the report, MSME entrepreneurs from states and regions participate in the showroom by showcasing their products. Those interested in selling or distributing these products won’t need to travel to various states and regions. This centralised approach saves time, money, and other opportunity costs since products can be purchased at the centre with the same prices and quality as in the main shops. Foreigners can also observe local products conveniently at the showroom.
The MSME products showroom features 906 products manufactured by 171 MSME entrepreneurs. Following the showroom event, the Union Minister visited a pharmaceutical factory in Insein Township, Yangon. During the visit, he observed the manufacturing processes of tablets, capsules, and caplets and emphasized the importance of continuous manufacturing processes without machine breakdowns. He called for the presence of spare machines and equipment to substitute in case of breakdowns.

Source: The Global New Light of Myanmar

Kyat value against the greenback has remained unchanged at approximately K3,450 at the Over-the-Counter market since early December 2023.
Meanwhile, the reference exchange rate of the Central Bank of Myanmar is K2,100.
On 5 December, the CBM allowed authorized dealers (private banks) to operate forex exchanges freely as per the market rate determined by the market force of the supply and demand.
Additionally, the CBM notified that outward remittance must comply with the rules and regulations of the Foreign Exchange Management Committee.
The dollar gained to around K4,000 on 19 August 2023.
Under Section 9 of the Foreign Exchange Management Law, only those entities holding foreign exchange dealer licences are allowed to deal in foreign currency and traveller’s cheques. Those holding foreign currencies without valid licences and permits will face legal actions under the law, according to the CBM’s notification released on 21 August 2023.
According to the notification (7/2014) dated 30 September 2014 issued by the Central Bank of Myanmar, affirmingly stating that under clause 15 of the Foreign Exchange Management Law, domestic residents are allowed to keep US$10,000 in maximum or equivalent amount of foreign currencies for six months. If those foreign currencies that have been unused for over six months have to be exchanged in local currency at the market price through authorized dealers or deposited into bank accounts.
Those illegally holding foreign currencies are to face legal actions under the Foreign Exchange Management Law, the CBM warned again. 

Source: The Global New Light of Myanmar

TOTAL export values for Myanmar in the third week of December 2023 exceeded US$ 266 million. Foreign demand for agricultural produce from Myanmar has been on an up-ward trend, given the current new year period. Agricultural produce such as green gram, black gram, pigeon peas, and other beans and pulses, sesame, peanuts, watermelon, cucumber, fruits, raw rubber, and onions, as well as industrial finished products like CMP textiles, have all experienced increased exports.

During this week, a total of 24,779 tonnes of beans and pulses were shipped, earning more than $21 million. Shipments to Pakistan, Thailand, the United Arab Emirates, Vietnam, Canada, the United States, and Japan increased compared to previous weeks.

Demand for sesame has also surged during the new year period. Sesame shipments to China this week exceeded those of previous weeks. Additionally, sesame demand from Japan, Thailand, Singapore, and Chinese Taipei remained high.

Black sesame prices ranged between $ 1,380-$ 1,815 per tonne in the export market, and domestic prices trended upwards in wholesale markets across states and regions, ranging between K295,000 and K340,000 per 45-viss bag of black sesame.

The garment industry plays a crucial role in Myanmar’s economic growth. In the past week, Myanmar earned over $ 82 million from garment exports manufactured under the cut-make-pack (CMP) system, exported to 53 countries. Major orders came from Japan, Poland, South Korea, Britain, and the United States.

The State prioritizes the development of the CMP system to boost the export sector. Apart from garments, the CMP system is used for manufacturing other products in Myanmar, such as electronic products, shoes, bags, wigs, magnifying glasses, and cameras.

Efforts are underway by the Myanmar Garment Manufacturers Association and relevant bodies to transition from the CMP system, involving the entire manufacturing process from receiving raw materials to producing finished products at the factory.

This move aims to develop the domestic industrial sector, ensuring greater profitability for business owners and strengthening the country’s economy.

As part of the State’s efforts to boost the country’s economy across various sectors, the following are prioritized: increasing productivity and the export of rice, beans and pulses, corn, oil crops, rubber, and fruits; raising foreign income from exporting CMP garments; and expanding manufacturing businesses using the CMP system.

Source: The Global New Light of Myanmar

YANGONITES are currently experiencing fuel crunches amid the forex market policy changes, and
cold storage charges are likely to increase, U Hla Han, a chilli pepper warehouse owner, told the Global New Light of Myanmar (GNLM). The cold storage charges and labour wages are approximately K1,000 per viss of chilli pepper as of the second half of 2023. The traders who stored chilli peppers at cold storage last year reaped a handsome profit in late 2022.
The cold storage charges were K75 in 2022 and increased to K125 per viss in 2023. The prices stood at
K8,000- 8,500 per viss of chilli pepper and K11,000-12,000 per viss of bell pepper in mid-2022. After
processing them at cold storage, they were sold at K19,000 per viss of chilli pepper (Moehtaung variety) and K31,000 per viss of bell pepper at the end of the year.
The prices declined in 2023 owing to the weak demand. Some chilli peppers are found to be sent to
cold storage in mid-2023 to earn great profit. The negative consequences of the fuel market might affect fuel-related businesses. Subsequently, the cold storage charges are expected to increase due to lengthening power blackouts and difficulty in buying fuel oil (diesel). The charges are possibly double or more compared to last year. Consequently, those traders who kept the stocks in cold storage saw little chance to make a profit this year.

Source: The Global New Light of Myanmar

In the domestic fuel market, the price of diesel is usually higher than octane, but at the beginning of this month, diesel is still three hundred kyats cheaper than octane per litre. Truck terminal operator, U San Win told the GNLM that diesel vehicles (especially trucks) are much cheaper than octane vehicles and rental vehicles. On 1 December, the price of 92 and 95 octane oil increased by K340 kyats per litre, but diesel only increased by K10 per litre. From 2 to 4 December, 92 octane is

K2,510 per litre, 95 is K2,640 per litre, diesel is K2,210 per litre, and premium diesel is K2,305 per litre as per reports. On 1 June 2015, the retail price of 92 octane was K730 for one litre and diesel was K690, but on 7 August, when the price of fuel oil fell in 2022, 92 octane was K1,615 per litre, and diesel was K1,970. On 31 August, the price of 92 octane was K2,605 per litre, and diesel was K3,245 per litre. On 4 May 2023, the price of 92 octane was K1,905 per litre, and diesel was K1,795 per litre.

However, on 5 May, one litre of 92 octane was K1,990, and diesel was K2,405 again. At the end of that period, the price of 92 octane was lower than diesel, and in early December, the price of 92 octane increased more than diesel. Around 60,000 taxis operating in Yangon use octane as well as gas-powered vehicles, therefore, due to the increase prices of octane, most passengers choose gas-powered vehicles for their journey to cut cost.

Source: The Global New Light of Myanmar

ACCORDING to the oil market in Yangon, about 70,000 tonnes of edible oil will be imported from abroad
starting December. In 2022, the average monthly import was only around 40,000 tonnes, but in July, the
maximum was imported with around 58,000 tonnes, and in February and September, only around 32,000
tonnes were imported, according to the statistics.

In the first six months from April to September of this year 294,457 tonnes of edible oil worth US$294.58
million were imported from abroad. In addition, it is reported that 33 companies will import oil in bulk and 27 companies will import ready-packaged consumer oil in December of this year. This week from 20 to 26 November, the wholesale price of edible oil is K4,990 per viss and the retail price is K5,180 per viss in Yangon, K5,600 per viss in Mandalay, K5,500 in Magway, K5,500 in Pathein and in Pyay, and K5,200 in Monywa. In December, local oil sellers are expecting to buy more oil imports from abroad at around the wholesale price in the market. They also wish to have a normal situation where they buy as usual in the market.

The oil market will return to normal if there are systematic actions against selling oil at more than the set price and storing more than the limit. If so, it is expected that the scenes of time-consuming queues for buying edible oil and increasing profit in selling will disappear. According to staff of the shops at the Bayintnaung brokerage, it has been several months since the scenes of crowded people lining up to buy the oil at the depots disappeared.

Source: The Global New Light of Myanmar

RUMOURS suggesting that the amount of cash withdrawals from bank deposits is being limited and
that some private banks are providing advance salaries to their employees have recently circulated on social media and internet websites. These claims are fake news and false information.

There is no limit imposed on the amount of cash withdrawals from bank deposits. Thanks to the Core
Banking System, banking services are now available at any branch of a bank throughout the nation, as the
deposit account data of customers are readily and conveniently accessible at each branch. Moreover, digital banking services, as well as payments, can be easily made, and all banking services are being provided as usual. Customers of the banks continue to enjoy regular banking services.

Therefore, it is announced that the Central Bank of Myanmar (CBM) is now working in cooperation with
law enforcement organizations to identify those who spread fake news intending to damage the public interests and to impose deterrence punishment against them.

Source: The Global New Light of Myanmar

Union of Myanmar Federation of Chambers of Commerce and Industry’s officials met a delegation led by the chairperson of Yunnan Provincial General Chamber of Commerce (YPGCC) on 17 October 2023 and exchanged ideas on boosting bilateral economic cooperation and enhancing trade.

Yunnan Province is ranked 37th in the global economy. It plays a pivotal role in the Belt and Road Initiative. It is the commercial and transport hub. Myanmar is the largest trade partner of Yunnan Province and the biggest import sourcing and export market. In 2020, 190 non-financial foreign investment projects were brought into Myanmar.

UMFCCI President U Aye Win gave a remark at the meeting that “Yunnan is the important land port in trade and economic cooperation with Myanmar. Myanmar’s agricultural produce is primarily sent to China. The UMFCCI asked the YPGCC to assist Myanmar businesses to meet China’s import rules and regulations. The federation also invited investments in the power sector and other sectors. The YPGCC plays a key role in the active involvement of private sectors to step up economic cooperation and trade promotion activities.”

Additionally, a Memorandum of Understanding to implement the Myanmar-China Economic Corridor (CMEC) was signed on 7 February 2018.

Dr Gao Feng, chairman of the YPGCC, addressed that the purpose of the visit is to reinforce the MoUs signed between Yunnan and Myanmar, cooperate in the energy and mining sector, disaster mitigation, tourism, poverty alleviation and upgrade the Myanmar-China Economic Corridor. Businesspersons from Yunnan accompanied him during his visit to bolster economic and trade cooperation between Yunnan and Myanmar.

Furthermore, bilateral investment development, communication development for trade promotion, information exchange, reinforcing practical cooperation, port business, rice supply, fertilizer supply, agricultural exports, digital transformation and cross-border trade were also highlighted at the meeting.

The representatives from the two chambers also discussed matters regarding potential cooperation opportunities and opinions on the mining sector, iron and steel, transport, e-commerce, tourism, agriculture, pharmaceuticals, sugarcane, sugar, peanut, vegetable, fisheries, food products, research and agricultural chemicals. 

Source: The Global New Light of Myanmar

Deputy Prime Minister Union Minister for Planning and Finance U Win Shein presided over a workshop on enhancing linkages between statistics users and providers in Nay Pyi Taw yesterday.
Speaking at the event, the Union minister said the statistics system of Myanmar is decentralized and only the cooperation of statistical departments and firm linkage can release accurate, qualified and reliable statistics.
The enhancement of linkage between the users and providers of the statistics plays a key role in the National Strategy for Development of Statistics for Myanmar and the User Engagement Strategy was drafted in 2019 with the help of the UN Statistics Division and International Development Partners.
He then talked about the “survey of users’ opinions on statistical yearbooks and digits released by Central Statistical Organization” conducted in September 2023 online and urged to understand the needs of users to release the statistics that can also support the development of the national statistical system.
Permanent Secretary Dr Soe Win also discussed the topic of Promoting Statistical Literacy for All while Improving Statistics User-Provider Relations by Deputy Director-General U Than Zaw of the Central Statistical Organization. At noon, the relevant officials of governmental departments and the Myanmar Statistics Association organized a roundtable discussion under the title of “Dissemination of Official Statistics” and “Statistics User Participation and Stakeholder Engagement”.

Source: The Global New Light of Myanmar