Posts in category: ECONOMY

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

Norwegian telecom giant Telenor has announced the sale of its operations in Myanmar to Lebanese investment company M1 Group for $ 105 million, the company announced on July 8. The current situation and the deteriorating situation in Myanmar are the main reason why the company decided to leave, Telenor said in a statement.

In May this year, Telenor announced a loss of $ 752 million (KR 6.5 billion) after severe restrictions on mobile services in Myanmar since February 1. The deal could be worth about $ 600 million indirectly, and M1 Group will take over all of Telenor’s stake in Myanmar and resume its current operations. The situation in Burma has become more difficult for Telenor in recent months due to public safety and regulatory reasons, said Telenor chief executive.

Telenor is also one of the largest foreign investors in Myanmar. Telenor, a Norwegian state-owned telecommunications company, also operates in Scandinavia, Bangladesh and India. Pakistan Thailand It also operates in Asian countries, including Malaysia and Myanmar, with 187 million users. In Myanmar, which has a population of 54 million, Telenor has about 18 million users, a third of the population.

Source: Daily Eleven

Kyat is depreciating against the US dollar at K1,660 in the local forex market although the Central Bank of Myanmar (CBM) sold dollars to control the value of the currency. In the first week of July, the CBM sold 6 million dollars at an auction rate. To govern the market volatility, it also sold 12 million dollars in June. 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 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 K1,650 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 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

The number of shares traded on the Yangon Stock Exchange (YSX) slightly increased to 79,296 shares in June 2021 but the trading value slipped to K430.285 million, the YSX’s monthly report indicated. Amata Holding Public Co., Ltd (AMATA) was newly listed on the exchange on 3 June, with the basic price of K4,500. In June, 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 the equity market. The share prices per unit were closed at K9,000 for FMI, K3,500 for MTSH, K8,100 for MCB, K20,000 for FPB, K2,800 for TMH, K3,200 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 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 making investments amid 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 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$3 million on 5 July for the first time this month at an auction market rate of K1,625. The CBM reportedly sold $12 million at an auction rate in June. The CBM’s move is aimed at governing 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. 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, 6 million dollars each on 22 and 27 April, $24 million in May and $12 million in June in the auction market.

Consequently, the exchange rate stands at K1,650 at present. The CBM trades the foreign currency with the authorized private banks under the rules and regulations of the FX auction market. 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

From February to the end of June 2021, the Central Bank of Myanmar sold more than $ 54 million in foreign exchange auctions, with the highest sales in May, according to data released by the Central Bank of Myanmar. The Central Bank of Myanmar sold $ 6.8 million a month in February 2021. No sales in March. $ 12 million in April; It sold $ 24 million in May and $ 12 million in June. In January 2021, the central bank bought $ 1.8 million. Monthly sales from January to December 2020 were $ 39.5 million in January 2020; $ 31.5 million in February; $ 21 million in March; $ 16.7 million in May; 39.1 million in June; $ 31.1 million in July; $ 35.6 million in August; $ 44.2 million in September; $ 43 million in October; $ 100,000 in November; It bought $ 7.8 million in December and $ 2.7 million in April 2020. 

It was resold in December 2020 for $ 3 million. It bought $ 1.8 million in January 2021 and sold $ 6.8 million in February. 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 are set out and these rules and regulations Authorized Dealer (AD) licensed foreign currency trading banks participating in the foreign currency auction in accordance with the instructions: 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 the 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 level). Comparison with Myanmar kyat to US dollar exchange rate. By comparison, a percentage of the appreciation of the Myanmar kyat exceeds the stipulated rules to open a competitive auction to buy foreign currency (US 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 of Myanmar using Refinitiv (formerly Thomson Reuters) ‘s Real Time Dealing Platform. For sale Opening a competitive auction to buy (US $).

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 of Myanmar using Refinitiv (formerly Thomson Reuters) ‘s Real Time Dealing Platform. For sale Opening a competitive auction to buy (US $); 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 of Myanmar using Refinitiv (formerly Thomson Reuters) ‘s Real Time Dealing Platform. As mentioned above, the Central Bank of Myanmar is opening a foreign exchange auction in the short term. This is to reduce large losses and to increase foreign reserves. The Central Bank of Myanmar (CBM) is conducting a foreign exchange auction to keep the exchange rate at a fixed rate. The Central Bank has stated that it does not intend to increase or depreciate the kyat.

Source: Daily Eleven

The US dollar exchange rate against Myanmar Kyat has risen by over K380 per dollar in the first six months of 2021, the local foreign exchange market’s data showed. Although the dollar exchange rate stood only around at K1,330 per dollar in the local foreign exchange market in January, the rate skipped to K1,620 per dollar on 30 June with a rise of over K380 per dollar in six months. This is the reason why the Central Bank of Myanmar (CBM) has been purchasing and selling the US dollar in the auction market to reduce the fluctuation of foreign exchange rates in a short-term period and fulfil the needs of foreign exchange reserves.

The CBM purchased US$1.8 million in January this year and it then sold $6.8 million in February. Likewise, the bank also sold $12 million in April, $24 million in May and $12 million in June. At present, the dollar exchange rate hit K1,620 per dollar in the local exchange market. But the rate does not touch the rate that hit a high of K1,730 per dollar in May. In the first six months of 2021, the highest and lowest exchange rate is currently fixed around K1,327-1,345 in January, K1,335-1,465 in February, K1,420-1,550 in March, K1,550-1,610 in April, K1,585- 1,730 in May and K1,595-1,620 in June.

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$3 million for the third time this month on 25 June. About US$3 million were sold at an auction exchange rate of K1,595 per US dollar. On 7 June, the CBM sold about $ 3 million for the first time this month at an auction market rate. The bank has already sold a total of US$12 million within this month. In May, the CBM reportedly sold $24 million at an auction rate. The CBM is conducting auctions for foreign exchange to reduce the fluctuation of foreign exchange rates in a shortterm period and fulfil the needs of foreign exchange reserves.

The dollar exchange rate against Myanmar Kyat stood at around K1,330 per dollar at the end-January. Then, the rate jumped to K1,730 per dollar on 12 May. With the rising US dollar exchange rate, the CBM has been constantly selling the US dollar at an auction exchange rate since 12 May. Consequently, the exchange rate dips to around K1,600 in the local foreign exchange market.

The local foreign exchange market’s data in 2021, the highest and the lowest exchange rate is currently fixed around K1,327- 1,345 in January, K1,335-1,465 in February, K1,420-1,550 in March, K1,550-1,610 in April and K1,585- 1,730 in May. 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.

Source: The Global New Light of Myanmar

The Central Bank of Myanmar (CBM) has sold US$6 million for the second time this month on June 24. About $6 million was sold at an auction exchange rate of K1,590 per US dollar. On 7 June, the CBM sold about $3 million for the first time this month at an auction market rate. The bank has already sold a total of $9 million for this month. In May, the CBM reportedly sold $24 million at an auction rate. CBM is selling the US dollar at an auction rate intending to keep the exchange rate stable.

The dollar exchange rate against Myanmar Kyat stood at around K1,330 per dollar at the end-January. Then, the rate jumped to K1,730 per dollar on 12 May. With the rising US dollar exchange rate, the CBM has been constantly selling the US dollar at an auction exchange rate since 12 May. Consequently, the exchange rate dips to around K1,600 in the local foreign exchange market. The local foreign exchange market’s data in 2021, the highest and the lowest exchange rate is currently fixed around K1,327- 1,345 in January, K1,335-1,465 in February, K1,420-1,550 in March, K1,550-1,610 in April and K1,585- 1,730 in May.

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. Last year, 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