Posts in category: ECONOMY

The current rally in the domestic market comes from the strength of the bullish international market and Kyat weakening against the US dollar, according to Yangon Region Gold Entrepreneurs Association (YGEA). The global gold price stood at above US$1,813 per ounce, while the Central Bank of Myanmar set a US dollar exchange rate at an auction rate of K1,664, resulting in the gold price gain in the domestic market. The price of precious pure yellow metal is possible to stay in the bull market tracking the dollar gain and increase in the international gold market. It touches a high of K1,572,000 per tical (0.578 ounces, or 0.016 kilogrammes).

The price is possible to continue rising as the global rally happens yearly in the coming months, U Myo Myint elaborated. In January 2021, the gold price was ranged between the minimum of K1,316,000 per tical (28 January) and the maximum of K1,336,000 per tical (6 January). It reached an all-time high of K1,410,000 per tical on 3 February and hit the minimum of K1,340,000 per tical on 2 February. In March, the rate fluctuated between the highest of K1,391,000 (25 March) and the lowest of K1,302,000 (4 March). The price had registered the highest of K1,455,000 (30 April) and the lowest of K1,389,000 (1 April). The price reached an all-time highest of K1,709,000 (12 May) and the lowest of K1,447,000 in May. The price moved in the maximum of K1,575,500 (11 June) and the minimum of K1,543,000 (19 June).

Last month, it fluctuated between K1,562,300 (26 Jul) and K1,587,000 (K1,587,000), the gold traders said. According to gold traders, the local gold reached the lowest level of K1,310,500 (2 September) and the highest level of K1,314,000 (1 September). In October, the rate ranged between K1,307,800 (30 October) and K1,316,500 (21 October). The rate fluctuated between the highest of K1,317,000 (9 November) and the lowest of K1,270,000 (30 November). In December, the pure yellow metal priced moved in the range of 1,280,000 (1 December) and 1,332,000 (28 December). With global gold prices on the uptick, the domestic price hit fresh highs in 2019, reaching K1,000,000 per tical between 17 January and 21 February, crossing K1,100,000 (22 June to 5 August), climbing to over 1,200,000 (7 August-4 September), and then reaching a record high of K1,300,000 on 5 September 2019. 

Source: The Global New Light of Myanmar

The number of shares traded on the Yangon Stock Exchange (YSX) plunged to 36,855 shares in July 2021 and the trading value also slipped to K198 million, the YSX’s monthly report indicated. Under Section 4 of the Trading Business Regulations, the stock trading was closed from 17 to 25 July 2021 as the long public holidays for COVID-19 prevention, control and treatment activities. The market resumed on 26 July 2021 as usual. In June, 79,296 shares worth of K430.285 million were traded on the exchange. Amata Holding Public Co., Ltd. (AMATA) was newly listed on the exchange on 3 June, with the basic price of K4,500.

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 were traded in equity market. The share prices per unit were closed at K8,900 for FMI, K3,300 for MTSH, K7,700 for MCB, K20,000 for FPB, K2,650 for TMH, K3,100 for EFR and K5,000 for AMATA, respectively. 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 maintained in the bull market in May with 78,642 shares worth of K432.448 million as well. The stock markets worldwide have reported their largest declines since the 2008 financial crisis.

Similarly, the local equities market is also scared by the COVID-19 crash, a market observer points out. At present, people are keeping emergency savings, rather than investing the COVID-19 crisis and current political conditions, he added. 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 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 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

Central Bank of Myanmar Vice-Governor U Win Thaw said that the Central Bank of Myanmar will announce the auction price instead of the previous market-based reference exchange rate. In ​​the meeting with the licensed banks, the banks have been instructed to keep the rise in foreign exchange prices. However, prices are still rising. High foreign exchange rates have contributed to the country’s political stability. It is very important as it can affect economic stability.

Central Bank Vice-Chairman U Win Thaw said that banks would do their best to report to the central bank if necessary to buy and sell foreign currency only within the limits of foreign exchange trading and to stabilize the exchange rate at a reasonable price at the time of the Kovis-19 incident. The Central Bank of the Republic of the Union of Myanmar has been selling foreign currency to special auction cause AD banks to meet the demand for foreign currency. It is added that the Central Bank of Myanmar will announce the auction price instead of the previous market-based reference exchange rate.

For sale in the case of exchanges, the difference between the selling price and the purchase price should not be more than one percent, and the reference exchange rate should be set as the mid rate and the trading should be amended within + 0.8 percent. Central Bank Vice-Governor Win Thaw said that if the banks acted within the framework, they would be able to maintain a high exchange rate. The central bank is launching a foreign exchange auction to reduce inflation and increase foreign reserves. The central bank is responsible for its foreign exchange operations, such as raising the exchange rate in the short term; A rule-based foreign exchange auction is underway to reduce inflation and implement the state’s two-pronged foreign exchange reserve.

Source: Daily Eleven

The Central Bank of Myanmar (CBM) sold US$5 million in two days this month at its FX auction rate, according to the auction results released by the CBM. It sold $3 million at its FX auction rate of K1,647 on 2 August and $2 million at K1,650 on 3 August. In addition, the CBM made six-month record sales of $39 million in July. In June, it reportedly sold $12 million. The CBM’s move is to steer the own currency value and govern the market volatility. The bullish hard currency gained in the local forex market, reaching the peak of K1,730 on 12 May from K1,330 in January-end.

At present, the rate is set at K1,665, although it has not reached the record rate in May. 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 at K1,420 and the highest of K1,550 in March, while 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.

Last month, the rate stood at the maximum of K1,670 and the minimum of K1,626 in July. In 2020, the exchange rate moved in the range of K1,465-1,493 in January, K1,436-1,465 in February, K1,320-1,445 in March, K1,395- 1,440 in April, K1,406-1,426 in May, K1,385-1,412 in June, K1,367-1,410 in July, K1,335-1,390 in August, K1,310-1,355 in September, K1,282-1,315 in October, K1,303-1,330 in November and K1,324-1,403 in December. In 2019, the rates are pegged at K1,508-1,517 in July, K1,510-1,526 in August, K1,527-1,565 in September, K1,528-1,537 in October, K1,510-1,524 in November and K1,485-1,513 in December. On 20 September 2018, the dollar exchange rate hit an all-time high of K1,650 in the local currency market.

Source: The Global New Light of Myanmar

The Central Bank of Myanmar (CBM) sold US$93.8 million at its FX auction rate in the past six months (February-July), according to the auction results released by the CBM. In July, the CBM reportedly sold $6 million on 8 July and $3 million each on 5,6,7,14,15,16,26,27, 28, 29 and 30 July in the auction market, totalling $39 million which is the largest amount sold in the past six months. Consequently, the exchange rate stands at around K1,645 in July-end, according to the CBM. The bullish hard currency gained in the local forex market, reaching the peak of K1,730 on 12 May from K1,330 in January-end. 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, $12 million in April, $24 million in May, $12 million in June and $39 million in July 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 dollar gain will benefit the exporters. Yet, it will hike up the local food prices. The currency intervention is required to steer the own currency value. The current political changes in Myanmar and the COVID-19 impacts affect the currency market. Some people want to hold the hard currency during 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 K1,335-1,465 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 last month. In 2020, the exchange rate moved in the range of K1,465-1,493 in January, K1,436-1,465 in February, K1,320-1,445 in March, K1,395-1,440 in April, K1,406-1,426 in May, K1,385-1,412 in June, K1,367-1,410 in July, K1,335-1,390 in August, K1,310-1,355 in September, K1,282-1,315 in October, K1,303-1,330 in November and K1,324-1,403 in December. In 2019, the rates are pegged at K1,508-1,517 in July, K1,510-1,526 in August, K1,527-1,565 in September, K1,528-1,537 in October, K1,510-1,524 in November and K1,485-1,513 in December. On 20 September 2018, the dollar exchange rate hit an all-time high of K1,650 in the local currency market. 

Source: The Global New Light of Myanmar

According to the letter sent by the Central Bank of Myanmar to the banks in the country on 28 July stated that cash can be delivered for COVID-19 measures, depending on the remaining cash amount in line with the policy of respective banks, beyond the restriction that allowing each person to take out K2 million and each company and organization, K20 million from respective banking accounts on a weekly basis. The statement signed by the Deputy Governor of the Central Bank of Myanmar was distributed that the COVID-19 rapidly spreads in Myanmar.

If those wishing to take out the cash submit the firm evidence to purchase medicines, oxygen, oxygen plants and accessories for giving treatment of COVID-19 to the people and cost the expenses for hospitals, clinics and quarantine centres, systematically scrutiny must be undertaken, and that cash can be issued depending on the remaining cash amounts in line with the respective banking policies beyond the restriction that allowing each person to take out K2 million and each company and organization, K20 million from respective banking accounts on a weekly basis, referred to letter MaBaBha/FIS (28/2021) dated 1-3-2020 of the Central Bank of Myanmar.

The statement was distributed to State-owned banks, private banks, foreign banks, bank branches and subordinate banks. As now is the time of breaking out COVID-19, taking out of cash from the banks are allowed beyond the restrictions, said Vice-Governor Daw Than Than Swe of the Central Bank of Myanmar. 

Source: The Global New Light of Myanmar

On July 27, 2021, the Central Bank of Myanmar sold another $ 3 million at a foreign exchange auction, almost five times in July, for a record $ 30 million. The Central Bank of Myanmar sold $ 3 million in a foreign exchange auction on July 7. $ 6 million on July 6; $ 5 million on July 5; $ 8 million on July 8; $ 3 million on July 14 and $ 3 million on July 15; $ 16 million on July 16; $ 26 million on July 26; On July 27, it sold $ 30 million in nine days for $ 3 million.

Short-term rise in foreign exchange rates; The central bank is launching a foreign exchange auction to reduce inflation and increase foreign reserves. The Central Bank of the Republic of the Union of Myanmar is responsible for its foreign exchange operations. A rule-based foreign exchange auction is underway to reduce inflation and implement the state’s two foreign reserves. Rules for Central Bank of Myanmar Competitive Auction Instructions have been set out and these rules and regulations are in place.

Authorized Dealer (AD) banks, including 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 by the regulation).

Source: Daily Eleven

According to the World Bank’s July 26 report on the Myanmar Economic Monitor, Myanmar’s economy is projected to shrink by 18% in fiscal year 2021 (October 2020-September 2021), with a number of factors affecting poverty and future development. Ongoing political unrest in Burma and the rapid rise of the third wave of the Kovis-19 epidemic have severely affected Burma’s economy, which has been weakened by the global epidemic since 2020. A further 18 per cent contraction would mean that the economy would be 30 per cent smaller than it should have been if the political situation in COVID-19 and February had not materialized in the wake of the sluggish growth experienced in fiscal 2020.

As many as one million jobs could be lost, and many workers could face reduced pay or wages. According to the report, Myanmar’s population is likely to fall into poverty by early 2022 compared to the 2019 level. Loss of job and income of the poorest and most vulnerable people who were hit hard by last year’s global pandemic combined with the risks of health and malnutrition will have a hard time keeping their lives safe, said Mariam Shaman, the World Bank’s Resident Representative in Myanmar, Cambodia and Laos. Reduced mobility and income; Protests and labor shortages have hit businesses hard, as well as logistics and telecommunications. 

It affects important business services such as health and education. Despite the reopening of branches and the central bank trying to address the issue in various ways, the kyat is still lacking in the market and banking and payment services are still limited. From late January to mid-July, the exchange rate between the dollar and the kyat depreciated by 23 percent, with some imports, including oil, rising sharply, with trade disruptions. Farmers have been affected by the drop in wholesale prices of some crops; Rising import prices and difficulties in accessing credit.

All in all, these impacts are compounded by consumption, It weakens investment and trade and affects businesses and imports and labor support. In May and June, there were signs of a stabilization in some areas, with a resumption of traffic and the easing of logistics restrictions, but the economy as a whole remains extremely weak and the spread of the COVID-19 epidemic could continue to shrink after July, said World Bank. As a long-term economic outlook, recent events could undermine the decades-long growth that has taken place. The impact on the business environment due to significant impacts on capital, human resources and productivity is likely to continue for many years to come, according to a World Bank report.

Source: Daily Eleven

The Central Bank of Myanmar (CBM) sold US$78 million at an auction rate over the past five months this year. The bullish hard currency gained in local forex market, reaching the peak of K1,730 on 12 May from K1,330 in January-end. In a bid to control the sharp daily gains of the US dollar, the CBM reportedly sold about 6.8 million dollars on 3 February 2021, $12 million in April, $24 million in May, $12 million in June and $24 million as of mid-July in the auction market. Consequently, the exchange rate stands at around K1,650 in mid-July.

The CBM trades the foreign currency with the authorized private banks under the rules and regulations of the FX auction market. The CBM’s move is aimed at governing the market volatility and supporting the state’s foreign exchange reserves, the CBM stated. 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 practiced the foreign exchange intervention. The dollar gain will benefit the exporters. Yet, it will hike up the local food prices. The currency intervention is required to steer the own currency value.

The current political changes in Myanmar 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 K1,335-1,465 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 in the maximum of K1,595-1,620 last month.

In 2020, the exchange rate moved in the range of K1,465-1,493 in January, K1,436-1,465 in February, K1,320-1,445 in March, K1,395-1,440 in April, K1,406-1,426 in May, K1,385-1,412 in June, K1,367-1,410 in July, K1,335-1,390 in August, K1,310-1,355 in September, K1,282-1,315 in October, K1,303-1,330 in November and K1,324-1,403 in December. In 2019, the rates are pegged at K1,508-1,517 in July, K1,510-1,526 in August, K1,527-1,565 in September, K1,528-1,537 in October, K1,510-1,524 in November and K1,485-1,513 in December. On 20 September 2018, the dollar exchange rate hit an all-time high of K1,650 in the local currency market.

Source: The Global New Light of Myanmar

The value of Kyat against a US dollar rose by K20 within a week (7-13 July) in the local for ex market. A dollar is worth K1,660 on 7 July, whereas the rate dipped to K1,635 on 13 July. The Central Bank of Myanmar (CBM) has sold 15 million dollars so far this month to control the value of the currency. Consequently, the Kyat value slightly increases in the local for ex market. The CBM sold 12 million dollars at an auction market in June as well. The bullish hard currency gained in the local for ex market, reaching the peak of K1,730 on 12 May from K1,330 in January-end.

In a bid to control the sharp daily gains of the US dollar in the local market, the CBM reportedly sold $24 million in May. Consequently, the exchange rate slightly fell to K1,580 in May. Nevertheless, it touches a high of above K1,600 for now. The CBM trades the foreign currency with the authorized private banks under the rules and regulations of the FX auction market. The local for ex 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 last month. In 2020, the exchange rate moved in the range of K1,465- 1,493 in January, K1,436-1,465 in February, K1,320-1,445 in March, K1,395-1,440 in April, K1,406-1,426 in May, K1,385-1,412 in June, K1,367-1,410 in July, K1,335-1,390 in August, K1,310- 1,355 in September, K1,282- 1,315 in October, K1,303-1,330 in November and K1,324-1,403 in December. In 2019, the rates are pegged at K1,508-1,517 in July, K1,510-1,526 in August, K1,527- 1,565 in September, K1,528- 1,537 in October, K1,510-1,524 in November and K1,485-1,513 in December. On 20 September 2018, the dollar exchange rate hit an all time high of K1,650 in the local currency market.

Source: The Global New Light of Myanmar