Posts in category: ECONOMY

The sharp rise in the value of the dollar and the devaluation of the kyat have shaken the economy. Concerns have been raised about the impact on the public as a result of the devaluation of the kyat. The impact on the grassroots needs to be considered more than on big business and entrepreneurs. The gap between rich and poor in Myanmar, the lowest base wage in the region, must also be taken into account. The problem of income-expenditure inequality among the grassroots is the biggest challenge. In the wake of the COVID-19 outbreak, families are struggling to make ends meet due to the current situation; Facing declining income or loss of income.

The Livelihoods and Food Security Fund (LIFT), administered by UNOPS, warns of food insecurity and access to health services amid a crisis of soaring food prices. Commodity prices are rising in the places where food is available, especially items such as oil and gas, have risen by an average of 10 percent to 15 percent, further exacerbating food insecurity in the poorest households. Many families are struggling to make ends meet, not to mention other foods that provide nutritious food. Many workers in and around Yangon face declining incomes.

Many of the factories that kept families in the suburbs afloat have been shut down due to declining orders and supply chain problems, and some are facing serious financial problems. As a result, many workers (mainly female migrant workers) have lost their jobs and many factories have refused or are unable to pay their remaining wages. Food shortages, and rising unemployment have forced many former migrant workers in the industrial sector to flee Yangon, hurting the livelihoods of many urban street vendors. Many who continue to live in Yangon are also facing further livelihood challenges due to debt. Those who can open a bank account and save money or rely on social security programs also face withdrawal challenges due to the closure of several branches.

Queues and ATMs

At the ATMs of private banks, there is no decrease in the number of queues, and it is a market where the kyat is exchanged between percentages, according to money changers. There has been a queue at ATMs for withdrawals of bank deposits, as well as a one-percent exchange rate for the kyat. Some people no longer want to line up in front of ATMs. People are suffering a lot. For those who really need it, queuing takes time. People who have money are given a percentage and cash is taken. It has been more than a week since the one percent exchange rate, and those who wanted to withdraw money used to pay only five percent, but now they have to pay up to seven percent, said one money changer.

There is currently a lot of exchange rate in the market and there is criticism of it. Private banks have planned to issue withdrawals within a week by issuing a token system. On May 11, the exchange rate in the local market was 1,710 kyats per dollar; On May 12, the exchange rate was 1,735 kyats per dollar. On May 13, the exchange rate was 1645 kyats per dollar. In addition, the central bank issued $ 12 million between May 12 and 13 to control the currency market due to the recent sharp rise in the exchange rate of the dollar.

The central bank sold $ 6 million at a foreign exchange auction on May 12, with the average exchange rate for the auction being 1,650.6 kyats. The central bank sold $ 6 million at a foreign exchange auction on May 13. The average exchange rate for the auction was 1,669.5 kyats, and the central bank sold $ 12 million in two days. The central bank began selling dollars on May 13 through exchange counters. Fluctuations in foreign exchange rates are based on factors that can affect foreign exchange demand and supply. Volume of imports and exports; National economic growth rate; Budget status; And the price of goods and services in the economy.

Food price volatility

Recently, with the devaluation of the kyat, the prices of basic foodstuffs have risen in the market. Import prices rise due to rising dollar This is especially true for motor oil, which is widely used in the market. Telecommunications equipment Medicine It will push up prices for goods such as food and raise commodity prices and inflation. Due to the continuous rise in foreign exchange rates, domestic medicine, Prices of some imported goods have risen. Domestic products such as rice, oil, Salt Chili Garlic / Red Potatoes did not go up in price much. Oil prices rose slightly. Prices, especially for imported goods, have risen. Kitchen utensils from Thailand are rising in price.

Due to the continuous rise in foreign exchange rates, the prices of most medicines in the pharmaceutical market have risen and wholesalers are restricting the sale of some imported medicines, according to drug retailers in Thingangyun Township. Foreign drugs are more expensive. Masks are not expensive. Foreign drugs are up about 10 percent. Dollar prices; When gold prices go up, it depends on what they buy. Companies are also attending. Roads are closed and drugs are entering the market normally. The price is up. We are not pushing up drug prices. The price goes up when you buy. Buyers are likely to call everyone who looks appropriate, if there are only a few. 

Basic foodstuffs; Prices of major food items, such as cooking oil, have risen by an average of 10 to 15 percent, almost double the prices of palm oil, the most consumed by low-income families. In the last week of January, there was only 5,600 per 2 liters of oil. Now it is 7,500 kyats. Coffee mixes are also more expensive. Domestic production is also on the rise. Everything is going up in price. The closure of banks and the disruption of transportation have affected rice trade and supply across the region. Increased short-distance and long-distance transportation costs have risen by 40 to 50 percent due to the increased risk of loss of freight, which will result in higher transportation costs as a result of fuel shortages.

Gasoline prices rise more than 33% in three months

Myanmar mainly imports kerosene from Singapore, with a monthly import of 200,000 tonnes of petrol and 400,000 tonnes of diesel, according to the Ministry of Commerce. Increased restrictions and downloads for coronavirus control in Asia; Domestic gasoline prices rose more than 33 percent in the first three months, despite concerns over demand for oil as the dollar strengthened. In three days, the dollar depreciated to around 90 kyats per dollar, but local petrol prices continued to rise, according to local petrol stations. On February 3, the price of diesel was 660 kyats per liter. Premium diesel 600 kyats. Octane 92 Ron 620 kyats per liter; Octane 95 Ron is only 750 kyats per liter, according to figures released by the Myanmar Petroleum Importers and Distributors Association (MPTA). On May 13, the price of diesel was 995 kyats per liter. 

Premium diesel 1015 kyats. Octane 92 Ron 995 kyats per liter. Octane 95 Ron has risen to 1,080 kyats per liter, according to local petrol stations. On May 14, the price of diesel was 1,005 kyats per liter. Premium diesel is 1015 kyats per liter. Octane 92 Ron 1005 kyats per liter. Octane 95 Ron continues to rise to 1090 kyats per liter. According to local petrol stations, the average price of petrol has risen by more than 33 percent in three months, from 990 kyats to nearly 1,100 kyats per liter depending on the type of petrol. In the first three months from the beginning of February until now, the price of diesel and premium diesel was over 330 kyats per liter. Octane 92 Ron more than 370 kyats per liter; Octane 95 Ron rose to over 330 kyats per liter, respectively. Myanmar imports around six million tonnes of kerosene a year, according to the Ministry of Commerce.

In the first seven months of the current fiscal year, imports of 2.7 million tonnes of kerosene were valued at $ 1.2 billion, down more than one million tonnes from the same period last year. In the current fiscal year, imports of kerosene decreased by 1.02 million tonnes compared to the same period last year. During the same period, 1.66 million tonnes of diesel was imported, down more than 650,000 tonnes from the same period last year. More than one million tonnes of gasoline was imported, down more than 350,000 tonnes from the same period last year to $ 227.187 million. It is undeniable that the impact of financial market instability has had a significant impact on the lower classes, mainly due to high commodity prices. The current volatile foreign exchange rate is affecting the majority of the population. As Myanmar relies heavily on imports, the rising dollar and rising gas prices could have a major impact on the population. As Myanmar’s economy slows and people’s purchasing power declines, so does the value of the dollar. Businesses say rising fuel prices and rising commodity prices are further hurting the people amid the crisis.

Source: Daily Eleven

On May 15, the world gold price was around $ 1,843, and the local gold price was back to 1,625,000 kyats, according to gold traders. The local gold price, which has been rising steadily since the central bank began selling dollars through some money changers, has returned to around 1625,000 lakh kyats. The local gold price jumped from around 200,000 kyats to around 1690,000 kyats between May 8 and noon on May 12. On May 13, the central bank began selling dollars through some money changers. The central bank sets the US dollar price at 1645 kyats per dollar through some money changers. 

At around 2 pm on May 14, 2021, the world gold price reached around 1,835 dollars and the price of Burmese gold returned to around 1625,000 lakh kyats. At around 2 pm on May 12, 2021, the world gold price rose to around 1,833 US dollars, and the local gold price jumped to around 200,000 kyats in five days, reaching a record high of around 1690,000 kyats. On May 11, 2021, the world gold price hit around $ 1,842, and the local gold price jumped around 100,000 kyats in four days, reaching a record high of around 1620,000 kyats. On May 10, 2021, the world gold price hit around $ 1,836, and the local gold price jumped over 60,000 kyats in three days to around 1580,000 kyats.

The lowest and highest monthly gold prices in the last six months were 1275,000-1335,500 kyats in August 2020; In September, it was 1298,000-1332,000 kyats. In October, it was 1307,500-1319,000 kyats. 12667700-1318,000 kyats in November; 1275,000-13333,000 kyats in December; In January 2021, it was 1316,500-13336,000 kyats. The lowest monthly and highest global gold prices were $ 1,549-1659 in February 2020; $ 1467-1673 in March; $ 1568-1729 in April; $ 1683-1748 in May; $ 1,680-1,779 in June; $ 1769-1975 in July; $ 1859-2075 in August; $ 1848-1975 in September; $ 1858-1933 in October; $ 1764-1966 in November; December 1776-1906 In January 2021, it was $ 1803-1958, with a gap of around $ 40 to over $ 200.

Source: Daily Eleven

Some private banks, such as CB, AGD and Yoma, have raised their fixed deposit interest rates. AGD Bank announces 9% interest rate for one month and 9.5% for three months. Fixed Deposit (for one and three months) has been increased from May 12, 2021. The interest rate has been increased by 9% for one month and 9.5% for three months. Customers can visit AGD branches to increase their money and keep it safe, the statement said. In addition, AGD Bank will change the token system to withdraw money. 

To make it easier to get tokens, branches will be able to make daily cash withdrawals from Monday to Friday. On the day of cash withdrawal at the branches, the amount of cash that can be withdrawn per person is limited to 300,000 kyats per week, while other banking services will be provided daily at the branches without the need for a token. CB Bank also sets interest rates for fixed deposits; 7.4% to 8.4% for one month; 7.4% to 7.9% for the three months; 7.65% to 8.15% for six months; For the nine months, 7.6 percent to 8.1 percent; 8.85% to 8.3% for one year; Increased from 8% to 8.5% for 24 months.

It can be deposited from Old A/C or New A/C or as a cash payment. If you want to withdraw money due to the need before the maturity of the fixed deposit, it will be calculated at the nearest fixed deposit interest rate so as not to offend the interest of the customers. In addition, the original fixed deposit at CB Bank will be adjusted at the current interest rate depending on the amount deposited in the new term upon maturity. Yoma Bank offers an interest rate of 7.5% for one and two months fixed deposit; 8.25% for three months; 8.35% for six months; 8.45% for nine months; The new interest rate will be effective from May 14, 2021.

Source: Daily Eleven

From May 13, the central bank will start selling dollars through some money changers, according to money changer operators. The central bank has set the US dollar price at 1,645 kyat per dollar through some money changers.

The central bank will sell dollars at some money changers, according to money changer operators. On May 12, the central bank sold $ 6 million at a foreign exchange auction, with the average exchange rate for the auction being 1,650.6 kyats.

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.

Source: Daily Eleven

The hard bullish currency has been gaining in the local forex market. A US dollar against Kyat reached the fresh high above K1,700 in history on 12 May, as per local money changer. On 2 February, a dollar value stood only at K1,335, and then, it dramatically rose to K1,720 on 12 May. The exchange rate between the US dollar and Myanmar Kyat showed a large gap of K380 over the past three months. In a bid to control the sharp daily gains of the US dollar, the Central Bank of Myanmar reportedly sold about 6.8 million dollars on 3 February, 6 million dollars each on 22 and 27 April in the 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. That is why the CBM practised the foreign exchange intervention. 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.

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 alltime high of K1,650 in the local currency market.

Source: The Global New Light of Myanmar

According to the Union Minister for Agriculture, Livestock and Irrigation, necessary research work will be expanded to develop the livestock and fisheries sector. Union Minister for Agriculture, Livestock and Irrigation U Tin Htut Oo met officials from the Talote Hla Fisheries Camp, Twantay Fisheries Institute and fisheries camp, and researchers from Maubin Township, Ayeyawady Region on 10 May. During the meeting, he said the people must be able to consume quality fresh fish to stand as the country rich in nutritious and healthy human resources. Excessive production of these products will benefit not only domestic consumption but also export promotion.

Research work will be expanded for the development of the livestock and fisheries sector. He added the importance of research work every sector. He urged the professionals to work together with interested universities and private institutions as soon as possible. Talote Hla Fisheries Camp, Twantay Fisheries Institute and fisheries camps in Maubin Township have been conducting researches on indigenous fish by dividing them into groups. Breeding is carried out in breeding ponds closest to natural waters. Researches are being done on the development of their reproductive organs according to their age and breeding. Efforts are being made to produce hatcheries for commercial breeding of Perch and silver-hued barb, which are popular in the local market.

In addition, these fisheries camps and the institute also produce pedigree fish species by natural and injection methods, assist GAqP techniques for good fish farming practices, and provide practical training to Zoology major students of Maubin University and private companies and local farmers. Afterwards, the Union Minister and party visited the Taguntine quality seeds farm near Kone Gyi village, Hinthada Township. They discussed the adequate use of quality seeds suitable for each region according to the season. He also met residents in Danubyu Township during the visit to the Tamyar river water pumping project. He cordially discussed the expansion of agro-based industries and regional development. During his visit to Kokkosu village in Maubin, the Union Minister and party inspected the implementation of the Green Rural Development Strategic plans for poverty alleviation, village-level leadership training and water purification system for village drinking water. 

Source: The Global New Light of Myanmar

According to the annual specific goods tax revenue, in the 2019-2020 fiscal year, the special excise tax was over 1,266 billion kyats, but more than 162 billion kyats less than the same period last year, according to the Central Statistics Office. It received 1266912.42 million kyats from October to September of the 2019-2020 fiscal year; 1429120.75 million kyats from October to September of 2018-2019 fiscal year; 604924.24 million from April to September 2018. In the fiscal year 2017-2018, from April to March, 1240214.11 million kyats. From April to March of the 2016-2017 fiscal year, it received 994235.73 million kyats. According to Myanmar’s annual trade tax revenue, in the 2019-2020 fiscal year, it received more than 2,110,187 million kyats in trade tax, but decreased by more than 146,000 million kyats from the 2018-2019 fiscal year, according to the Central Statistics Office. Published by Information Unit

According to the annual commercial tax revenue, 1877851.77 million kyats from April to March of the 2016-2017 fiscal year; From April to March of the fiscal year 2017-2018, 1974699.13 million kyats. 920,618.14 million kyats from April to September 2018; 2256770.20 million kyats from October to September of 2018-2019 fiscal year. From October to September of the 2019-2020 fiscal year, Ks 2,110,187.21 million was received, according to the Internal Revenue Department. Published by Information Unit. In the 2019-2020 fiscal year (October 2019 to September 2020), a total of 7969.397 billion kyats is expected to be collected from various taxes. 2227.964 billion kyats from commercial tax; 1348.541 billion kyats from special excise tax; 85.407 billion from office tax and stamp duty; It is expected to receive up to 165 billion kyats from the Aung Bar Lay Thein Prize.

Myanmar’s annual tax revenue was Ks 1683 billion in the 2011-2012 fiscal year. 3373 billion kyats in the 2012-2013 financial year; 4459 billion in the 2013-2014 financial year; 6518 billion kyats in the 2014-2015 financial year; 6315 billion kyats in the 2015-2016 financial year; 7122 billion in the 2016-2017 financial year; 7423 billion kyats for the 2017-2018 fiscal year; Between April and September 2018, Ks. 2792 billion; In the 2018-2019 financial year, 7791 billion kyats was collected. The ratio of tax revenue to GDP was 3.63% in the 2011-2012 fiscal year. 6.5% in the 2012-2013 financial year; 7.69% in the 2013-2014 financial year; 9.84% in the 2014-2015 financial year; 8.61% in the 2015-2016 financial year; 8.93% in the 2016-2017 financial year; In the 2017-2018 financial year, 8.21%; Between April and September 2018, 8.49 percent; 7.3% in 2018-2019 fiscal year and 6.61% in fiscal year 2019-2020 (original estimate).

Source: Daily Eleven

The global dollar index hit around 90 points on May 10, and on May 10, the local exchange rate was around 1,695 kyats per dollar, according to foreign currency traders. The global dollar index, the highest in six months, was 94.12 points in October. 94.24 points in November; 89.93 points in December; 91.02 points in January; 91.59 points in February; In March, it was 90.93 points. The lowest and highest monthly foreign exchange rates in the domestic market were 1297-1340 kyats in October 2020; In November 1306-1327 kyats; In December 1326-1405 kyats; In January 2021, it was 1333-1355 kyats. In February, it was 1340-1475 kyats. On May 10, 2021, the exchange rates of other foreign currencies in the local market were 1,780 Euro, 1,175 Singapore dollar, 350 Malaysian Ringgit, 50.5 Thai baht, 219 219 Chinese yuan 219 and Japanese Yen.

Source: Daily Eleven

In Myawaddy, on the Myanmar-Thai border, the Thai baht has hit a record high against the dollar, leaving more than 10 lakh kyats in a day, according to money changers. On May 10, the exchange rate of the Thai baht was changed to 100,000 baht per 100,000 kyats, but by 12:30 pm on May 11, it had risen to 1,970 baht per 100,000 kyats, leaving a gap of 50 baht in two days.

At the Myawaddy border, the kyat is converted into Thai baht when buying goods, and the loss of more than 2,000 kyat for every 100,000 kyat converted from the Thai kyat to the Thai baht is high, depending on the amount of money. There is also a difference of about 50 baht between the Thai baht and the Thai baht transfer fee. You only have to pay 1970 baht to get 100,000 kyats in cash, but you only have to pay 1920 baht to get it in your account. 

Despite the baht’s appreciation against the dollar and gold, prices are twofold. In addition, Myanmar Bank Account The cash exchange market is huge. The Thai baht has risen sharply as the Thai baht has been suspended from importing four Thai food items, including soft drinks. Banks are also hitting financial markets and affecting cross-border trade, said a border trader. Even though the goods have been sold, it is difficult to transfer money. As a result of the appreciation of the Thai baht, remittances from Burmese migrant workers to their parents in Thailand have increased since last month.

Source: Daily Eleven