Posts in category: ECONOMY

The Central Bank of Myanmar (CBM) will steer private sectors to ensure that the foreign currency earned from exports will be deposited in the local bank accounts, the CBM’s governor Daw Than Than Swe said. On 20 March, the governor made that remark at a meeting held in Nay Pyi Taw with the companies that fail to deposit export earnings.

According to Sections 18 (A) and 38 (B) of the Foreign Exchange Management Law and directive 27/2021, exporters to Asian countries must deposit their export income within 45 days from the starting day. Those shipping goods to countries outside Asia must deposit income within 90 days.

The Central Committee on Ensuring Smooth Flow of Trade and Goods, the Ministry of Commerce, the Bureau of Special Investigation and the Working Group on facilitation of Trade and Goods are monitoring whether there is actual export income into the local bank account or not. Export earnings are one of the main foreign capital inflows. It also plays a pivotal role in stabilizing the forex market. Strong compliance of the export companies to the Foreign Exchange Management Law, rules and regulations will facilitate money flows. 

Source: The Global New Light of Myanmar

Yangon Region Gold Entrepreneurs Association hikes reference rate to over K2.34 mln per tical (0.578 ounce or 0.016 kilogramme) with the gold spot prices rising. On 1 March, gold spot prices hit US$1,833 per ounce and YGEA’s price was K2,159,500 per tical. As the gold spot price rallied to $1,989 per ounce in the international market, the reference price of the YGEA jumped to K2,343,300 per tical on 18 March. The figures indicated an increase of $156 per ounce and over 180,000 per tical within three weeks. Despite the YGEA’s reference price, pure gold climbed to K2,980,000 per tical in the unofficial market, showing a large gap of over K630,000 per tical with the reference price.

YGEA calculated the price depending on the Central Bank of Myanmar’s reference exchange rate of K2,100, with some addition, while the US dollar is exchanged at K2,870 in the unofficial forex market. The gold spot prices and dollar exchange rates influence the domestic gold price. The soaring dollar exchanging at over K4,500 drove the pure gold price up to a record-high of K3.7 million per tical in late August 2022. For the gold price to decline, the Ministry of Natural Resources and Environmental Conservation has been selling gold ingots under the competitive bidding system in Yangon, Mandalay and Nay Pyi Taw.

With an aim at reducing gold prices, the YGEA and Mandalay Region Gold Entrepreneurs Association sold gold bullion supplied by the executive members and the members as well.mUnder the guidance of the Central Committee on Ensuring Smooth Flow of Trade and Goods, the Monitoring and Steering Committee on Gold and Currency Market was formed on 21 January 2022 as gold and currency market stability play a crucial role in the trade facilitation.

The objectives of the committee are inspecting and prosecuting market manipulation, checking if there is compliance with payment rules or not in the domestic market, and proceeding against those unscrupulous traders who intend to interfere with the free and fair operation of the market under the existing laws, by-laws and regulations in line with the official directives, illegal foreign currency holding, illegal trade and taking legal actions against price manipulators. 

Source: The Global New Light of Myanmar

Twenty money changers including Myanmar National Airlines have got their forex licence revoked starting from 14 March as they failed to comply with the rules and directives issued by the Central Bank of Myanmar (CBM), according to its Board of Directors meeting. They are Oake Khaung Travels & Tourism Senjo Royal Myanmar, Dawei Popular, Zam Myo, Phyo Thet, Sky Bound, Myanmar MCG Corporation, Htwe and Htwe Family, Won Won, United Eleven, Tun Yama, Myanmar Alinka Hotel Group, Cartel, Super Phoenix, Golden Falcon Shipping, Fairness Travels & Tours, Yadana Bon Travels & Tours, Myanmar National Airlines, Dewant Financial Loan Microfinance and Treasure Su.

The CBM set the reference exchange rate at K2,100, while a US dollar was exchanged at K2,880 in the unofficial market. CBM has set the currency trading band at 0.3 per cent for the Kyat to fluctuate between these two specified upper and lower exchange rates for transactions, selling or buying, according to a directive issued by the CBM on 10 August 2022. Therefore, financial institutions including banks and informal money exchanges are instructed to set a dollar value at K2,094 for buying and K2,106 for selling. However, the over-the-counter Kyat-dollar exchange rate was K2,865 for buying and K2,880 for selling on 17 March. There is a large price difference between the reference rate of the CBM and the unofficial market rate. However, there is no way to set the new price, as per the notification released on 15 January.

Investigation and Prosecuting of market manipulation to hike the exchange rate in the local forex market with the malicious rumours will be undertaken, according to the Central Bank of Myanmar’s statement released on 10 February. Some exporters, importers and banks are attempting to raise the exchange rate owing to the rumours. The statement called for bank institutions to govern the market and investigate those fraudsters who circulate rumours. The CBM released a notice that the exporters, importers and banking institutions are asked not to elevate the exchange rate. Those banking institutions that will not abide by financial regulations will face legal action as well. Last August, a dollar value hit an all-time high of over K4,500 in the grey market. Consequently, the CBM sold dollars at its auction market for the sectors in need, to control the soaring dollar, injecting a total of $443.8 million in the markets in 2021. 

Source: The Global New Light of Myanmar

During the week ending 14 March 2023, the prices of Kyukok garlic, black gram, pigeon pea and chickpea went up, whereas the prices of sugar and palm oil declined in the Bayintnaung Wholesale Centre.
onion
Yangon’s commodity trading hub saw the entry of 2,364,000 visses of onions in 14 days this month, with an average supply of 210,000 visses per day. The prices moved in the range of K1,050 and K1,850 per viss depending on the quality, size and producing areas (Seikphyu and Myittha) on 14 March.
Garlic
On 14 March, the prices stayed at K3,200-4,000 per viss depending on varieties and qualities, whereas Kyukok garlic fetched K4,300 per viss.
Potato
The wholesale prices of local potatoes moved in the range between K1,300 and 1,900 per viss depending on producing areas.
Chilli pepper
The wholesale prices of chilli peppers were K11,000-12,500 per viss for long chilli pepper and Moehtaung variety. The prices of bell peppers from the Sinphyukyun area and delta regions were K14,500-16,000 per viss respectively.
Rice
The prices stood at K52,000-53,000 per bag for summer rice grown under the intercropping system, K57,000 for low-grade short-matured summer rice (90 days), K49,000-50,000 per bag of low-grade Ngasein rice variety, K68,000 for Pawsan rice from Bogale, K71,000 from Pyapon, K73,000 from Myaungmya, K85,000 for Pawsan rice from Shwebo area respectively.
Palm oil
The wholesale reference price of palm oil in the Yangon Region showed a small increase of K35 this week. The reference price for a week from 13 and 19 March is set at K4,635. Palm oil is priced at US$1,053 per tonne in the global market. However, the wholesale market price dropped to K6,500 on 14 March from K6,900 per viss on 9 March.

Source: The Global New Light of Myanmar

The Trademark Law enacted in 2019 will come into effect from 1 April 2023, according to the official notification. The Ministry of Commerce will receive filing for a trademark from the effective date.

The centers will be opened to receive trademark applications in Yangon city and Nay Pyi Taw. This law will promote investment and commerce by protecting the trademarks and interest and legal rights of the owners.

It also helps elevate the brand’s value and penetrate global markets, Yangon Region Chief Minister U Soe Thein said at an awareness event for the Trademark Law. Myanmar is a member of the World Trade Organization and World Intellectual Property Organization. 

Source: The Global New Light of Myanmar

A total of 19 BYD-brand electric vehicles imported by Earth Renewable Energy Co Ltd arrived at Htitan port in Yangon on 3 March and were allowed to claim them under Customs procedures. Asia Pacific Automaker Corporation Co Ltd imported 30 Dongfeng electric vehicles via the Muse 105-Mile Trade Zone in Shan State (North) and claimed them under Customs procedures. The importation of battery electric vehicles (EVs) is allowed with an exemption of Customs tariffs for the development of the domestic electric vehicle sector. 

Source: The Global New Light of Myanmar

The Swiss food manufacturer Nestlé will stop all production in Myanmar, a spokesperson said on February 27, AFP news agency reported. Due to the current economic situation, the Nestle factory and headquarters in Yangon, the center of commerce, will stop operations, a spokesman told AFP, but did not say when the operations would stop.

Nestle has launched Nescafe, an instant coffee in Myanmar. Maggi Noodles; Milo chocolate powder is also being sold. Instead of Nestle, a Burmese company will sell Nestle products to Thailand. 

Malaysia The spokesperson said that it will be marketed and distributed through the Philippines. “We will do everything we can to support those affected by this decision,” the spokesman said. Nestle has 138 employees at its Myanmar factory and headquarters, the spokesperson said.     

Source: Daily Eleven

Kyat weakened to K2,880 against the US dollar in the unauthorized market despite CBM’s reference rate of K2,100. Kyat depreciation against greenbacks persists at K2,860 in the grey market although the Central Bank of Myanmar set the reference exchange rate at K2,100. CBM has set the currency trading band at 0.3 per cent for the Kyat to fluctuate between these two specified upper and lower exchange rates for transactions, selling or buying, according to a directive issued by the CBM on 10 August 2022.

Therefore, financial institutions including banks and informal money exchanges are instructed to set a dollar value at K2,094 for buying and K2,106 for selling. However, the over-the-counter Kyat-dollar exchange rate was K2,865 for buying and K2,880 for selling on 25 February. Investigation and Prosecuting of market manipulation to hike the exchange rate in the local forex market with the malicious rumours will be undertaken, according to the Central Bank of Myanmar’s statement released on 10 February.

Some exporters, importers and banks are attempting to raise the exchange rate owing to the rumours. The statement called for bank institutions to govern the market and investigate those fraudsters who circulate rumours. The CBM released a notice that the exporters, importers and banking institutions are asked not to elevate the exchange rate. Those banking institutions that do not abide by financial regulations will face legal action as well. Last August, a dollar value hit an all-time high of over K4,500 in the grey market. Consequently, the CBM sold dollars at its auction market for the sectors in need, to control the soaring dollar. A total of $443.8 million were sold at an auction rate in 2021 as well. 

Source: The Global New Light of Myanmar

The domestic gold market is sluggish, said U Myo Myint, chair of the Yangon Region Gold Entrepreneurs Association (YGEA). “The market is flat for now. Yet, the price moves up and down tracking the gold spot price.’’ On 2 February, gold spot prices hit US$1,955 per ounce and YGEA’s reference price was K2,303,200 per tical. As the gold price declined to $1,838 in the international market, the reference price was reduced to K2,165,400 per tical on 21 February.

Despite the YGEA’s reference price, the pure gold spiked at K2,857,000 per tical in the unofficial market, showing a large gap of K690,000 per tical. YGEA calculated the price depending on the Central Bank of Myanmar’s reference exchange rate of K2,100, with some addition, while the US dollar is exchanged at K2,860 in the unauthorized market. The price of gold in the domestic market is highly correlated with the gold spot prices and dollar exchange rate.

The soaring dollar exchanging at over K4,500 drove the pure gold price up to a record-high of K3.7 million per tical in late August 2022. For the gold price to decline, the Ministry of Natural Resources and Environmental Conservation has been selling gold ingots under the competitive bidding system in Yangon, Mandalay and Nay Pyi Taw. With an aim at reducing gold prices, the YGEA and Mandalay Region Gold Entrepreneurs Association sold gold bullion supplied by the executive members and the members as well.

Source: The Global New Light of Myanmar

For a week from 11 to 17 February 2023, prices of three export pulses and chickpeas jumped. The wholesale market price of palm oil peaked at K7,000 per viss when 30,000 tonnes of palm oil were brought into the country. The newly harvested garlic from Shan State and Pakokku areas entered Yangon markets.

Onion
Bayintnaung wholesale market saw the entry of 180,000 visses of onions on 17 February 2023. The prices moved in the range of K1,000 and K1,500 per viss depending on the quality, size and producing areas (Seikphyu, Pyawbwe and Myittha) that day.
On 17 February, the price of large onions from the Myittha area plunged to K1,200 per viss. With about 21,276 visses of onions flowing into the Myingyan depot on 17 February, the highest price of onions from the Yaw and Pale areas was K1,150 per viss. The maximum price of onions from the Myittha area was K1,400 per viss and those from Myingyan touched the highest of K1,000 per viss with the supply of 30,000 visses to the Mandalay market.

Garlic
New garlic from Shan State and Pakokku area entered the Yangon market on 13 February. On 14 February, the prices stayed at K3,650-5,500 per viss depending on varieties and qualities.

Potato
Chinese potato price was around K2,250 per viss on 17 February, while the prices of local potatoes from Sinphyukyun and Bhamo areas moved in the range between K1,300 and 1,900 per viss.

Chilli pepper
The wholesale prices of chilli peppers were K9,000-10,000 per viss for long chilli pepper and Moehtaung variety. The prices of bell peppers from the Sinphyukyun area were K14,500-15,000 per viss.

Rice
The new low-grade rice was valued at K53,000-6,1000 per bag depending on varieties (Aemahta and rice grown under intercropping system). The new Pawsan rice prices peaked at K74,000-87,000 per bag depending on the producing areas (Pyapon, Myaungmya and Shwebo).
The old Pawsan rice prices rocketed to K79,000-107,000 per bag depending on the producing areas.

Palm oil
The wholesale reference price of palm oil in the Yangon Region for three consecutive weeks from 13 to 19 February has been set at K4,490. The FOB price of palm oil dropped to US$955 per tonne on 14 February. However, the wholesale market price rallied to K6,550-7,000 per viss despite the inflow of imported edible oil between 8 and 14 February.

Pulses
The prices of various pulses were spiked at over K1,885,000 per tonne of black gram (Fair Average Quality/RC), K2,120,000 per tonne of black gram (Special Quality/RC), K2,132,500 per tonne of pigeon pea (red gram) RC, K4,100 -4,400 per viss of chickpea in Yangon markets.

Source: The Global New Light of Myanmar