Posts in category: ECONOMY

The Ministry of Home Affairs released a statement saying that property brokers need to have real estate registration certificates to run their businesses. The Central Committee for Anti-Money Laundering issued Notification 1/2022 for real estate agents on 9 November. The statement said that, aiming to prevent money laundering cases in Nay Pyi Taw, regions and states and self-administered regions, if the agents want to run services of renting and buying properties, they need to register and inform the money laundering cases to the Financial Intelligence Unit (FIU).

Those who run the property agencies are required to register from the township level and they need to get the document as proof of their attendance to the anti-money laundering and terrorist financing training course. They can make registration with the pledge that they will attend the advancing awareness training on bylaws, laws, orders and directives, copies of their bank account and bank statement, it stated. Moreover, they must record the data of their customers and pay tax under the existing tax law and bylaw.

They must be ready to send their service records if the Financial Intelligence Unit and other relevant organizations ask them for criminal cases. Regarding the remittance, they also need to follow the payment methods set by the authorities. If it fails, it must report to the Financial Intelligence Unit, it added. If they are suspected of breaking the Anti-Money Laundering Law, Counter-Terrorism Law and existing laws, their business will be suspended and reported to the FIU. If they fail to follow the directives, they will face legal action under the existing law, it said. 

Source: The Global New Light of Myanmar

Just business entities in the fuel oil sector comply with the reference price set by the institution concerned, so the fuel consumers are delighted with that. Furthermore, those engaged in the forex market and in the gold market are found to have weak compliance at the reference prices. The consumers are bearing the burden of those extra costs. The reference price was set for fuel oil and edible oil depending on the market price and foreign exchange rate. “I could buy the fuel oil according to the daily wholesale and retail reference prices,” Ko Than Win, a taxi driver, told the Global New Light of Myanmar (GNLM).

The fuel oil wholesale reference prices stood at K1,867 per litre of Octane 92, K1,941 for Octane 95 and K2,291 for diesel. The retail prices were K1,965 per litre of Octane 92, K2,041 for Octane 95 and K2,410 for diesel. Those reference prices were effective on 2-4 December and the fuel buyers were able to reach them. Next, the wholesale reference price of edible oil for the Yangon market is released on a weekly basis on Mondays depending on the foreign palm oil market conditions. However, the consumers find it hard to buy them at the reference prices, said a trader.

Every month, approximately 30,000 tonnes of edible oil are imported from the foreign markets and mobile market trucks offer them at the retail reference price. Nonetheless, the sales quota volume is extremely low. That being so, there is a gap of thousand Kyats between the reference price and the market price. In August 2022, there was a price difference of K4,000 per viss. On 3 December, it narrowed to K1,200 per viss of palm oil, according to the Yangon edible oil market. Likewise, the institutions concerned set the reference prices for exchange rate and daily gold price. Weak culture of compliance by traders in those industries resulted in exorbitant market prices compared to the reference prices.

Moreover, the floor price for 2022 monsoon paddy (low-grade) and 2023 summer paddy (low-grade) was set at K630,000 per 100 baskets (46 pounds per basket), according to the leading committee for the Protection and Promotion of the Rights and Interests of Farmers. Actually, the market price hit K1 million to K1.3 million per 100 baskets (50 pounds per basket), said a rice dealer from Wakema Township.

The committee set the floor price for paddy at K540,000 per 100 baskets for 2021 monsoon paddy and 2022 summer paddy. They were sold at K600,000 per 100 baskets. Unlike reference price, the traders are notified of purchasing the paddy at floor price if the market price falls below that. The farmers received higher prices than the floor price in the past two years. Next, the importers and the traders who keep the stocks in hands of the certain goods earn a great profit amid the weak compliance. A buyer called for enforcement for the regulatory compliance so that they can enjoy the reference prices of those certain commodities and goods.

Source: The Global New Light of Myanmar

During the week ending 22 November, Yangon’s Bayint Naung Wholesale Market saw an entry of newly harvested monsoon onions and Chinese onions and old summer onions. Chinese onions flowed into the markets at a cheaper rate. Although the wholesale reference price of palm oil increased, the market price and the delivery order price declined. The prices of black gram and pigeon peas also decreased.
Onion
On 22 November, 120,000 visses of onions from various regions flowed into the Yangon market.
The prices of old summer onions stood at K3,000-K4,400 per viss of onions from the Seikphyu area, K3,800-K4,800 from the Myingyan area and K2,200-4,200 from the Myittha area, whereas Chinese onions moved in the range between K2,600 and K3,400 per viss.
Garlic
The wholesale prices of the Kyukok garlic variety were K3,325 per viss on 22 November, while the local garlic from Shan State (Aungban area) moved in the range between K2,900-K3,900 per viss.
Potato
New Chinese potatoes entered the Yangon markets at cheaper rates, with K1,900 per viss of Chinese potatoes. Old Chinese potatoes were priced at K2,400 per viss while the local potato from Shan State (Aungban area) was valued at K1,900-K2,150 per viss.
Chilli pepper
Monsoon chilli pepper price dipped. The Yangon market saw a large supply of chilli peppers from various regions.
On 22 November, the wholesale prices of chilli peppers were K17,000-K17,300 per viss of Shan long chilli pepper, K16,500 for the Indian Moehtaung variety. The bell pepper from Shan State fetched K21,000 per viss. The long chilli peppers processed at cold storage were priced at K21,000 per viss and the bell peppers were valued at K31,000 per viss.
Palm oil
The wholesale reference price of palm oil in the Yangon Region this week was up by K30 per viss compared to the last week’s price. The reference price for a week from 21 to 27 November was set at K4,380 per viss.
Consequently, the wholesale prices of palm oil barrels were K5,600-K5,750 per viss on 22 November.
Rice
On 22 November, glutinous rice prices were K95,000-K98,000 per viss. The prices of high-grade Pawsan stood at K85,000-K94,000 per bag from the Shwebo area, K62,000-K67,000 from Pathein/Myaungmya areas and K58,000-K62,000 from the Pyapon area, while the prices of other rice varieties were K49,000 of short-mature rice (90 days), K46,000 for rice grown under the intercropping system and K42,000-K43,000 for monsoon low-grade rice.
Pulses
The prices of various pulses stood at over K1,726,000 per tonne of black gram (Fair Average Quality/RC), K2,036,000 per tonne of black gram (Special Quality/RC), K1,895,000 per tonne of pigeon pea (red gram) RC and K4,100-K4,300 per viss of chickpea on 22 November.

Source: The Global New Light of Myanmar

Export earnings can be made in Chinese Yuan and Thai Baht in addition to the US dollar, the Central Bank of Myanmar notified. The CBM’s notice takes effect on those export items; various pulses (green gram, black gram, chickpea and pigeon pea), edible oil crops (peanut and sesame), corn, rubber, fishery products (fish, shrimp, crab, eel) and livestock products (live cattle, hides, frozen meat and dried meat).

The traders need to apply for a licence to make Yuan or Baht payments. As per the US dollar policy, 65 per cent of earnings must be exchanged for local currency at the CBM’s reference foreign exchange rate, while exporters can use 35 per cent of export earnings or sell them on to others with an over-the-counter rate within one month. The procedures for border trade such as (100 per cent TT advance payment) and circular letter system have not been eased, according to the statement. Those companies that fail to deposit export earnings in local accounts will face a lawsuit.

Source: The Global New Light of Myanmar

Yangon Region Gold Entrepreneurs Association (YGEA) raised the reference price of yellow metal to K2.1 million per tical as gold spot price climbed in international markets. When the gold spot price was US$1,668 per ounce on 8 November, YGEA set the pure gold price at K1,965,000 per tical (0.578 ounces or 0.016 kilogramme). On 15 November, the gold spot price rallied to $1,783 per ounce. Therefore, YGEA hiked up the reference price to K2.1 million per tical.

The gold spot price jumped by $110 per ounce within one week. The pure gold price was up by K135,000 per tical. Despite the YGEA’s reference price, pure gold touched a high of K2.7 million per tical in the domestic markets. There is a gap of about K600,000 per tical between the YGEA’s reference price and market price.

YGEA calculated the price depending on the Central Bank of Myanmar’s reference exchange rate of K2,100, with some addition. The dollar was exchanged at K3,000 in the black market. Therefore, there is a large gap between the YGEA’s price and the market price based on the black- Meanwhile, YGEA called for the gold shops in Yangon Region to sell pure gold at K2,530,000 per tical, according to its notification released on 30 October 2022. The soaring dollar exchanging at over K4,500 pushed up the pure gold price to a record-high of K3.7 million per tical in late August.

Source: The Global New Light of Myanmar

The US dollar exchange rate does not fluctuate these days and Kyat depreciates against the hard currency US dollar at approximately K3,000 on the over-the-counter market, according to local forex traders. The current exchange rate is K2,990 for buying and K3,050 for selling in the grey market. However, the Central Bank of Myanmar (CBM) set the reference exchange rate at K2,100. In order to strengthen the domestic currency in the local forex market, the CBM 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 set a dollar value of K2,100 for buying and K2,106 for selling. In August, a dollar value hit an all-time high of over K4,500 in the grey market and consequently, pure gold reached a record high of K3.7 million per tical in history. 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. In September 2021, a dollar value hit a peak of over K3,000 in the black market, pushing pure gold up to K2.22 million per tical.

Under 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 17 December 2021 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 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

The price of pure gold inched higher to K2,680,000 per tical (0.578 ounce, or 0.016 kilogramme) following the increase in global gold spot prices, according to the domestic markets. The reference price issued by the YGEA has also risen simultaneously. On 4 November, the YGEA’s price was K1,936,000 per tical when the global gold spot price was US$1,644 per ounce. On 5 November, the global gold price increased to $1,681 per ounce, the reference price by the YGEA also climbed up to K1,980,000 per tical.

There is a price gap of about K700,000 per tical between the price set by the YGEA and the market price. YGEA calculated the price depending on the Central Bank of Myanmar’s reference exchange rate of K2,100, with some addition. The dollar was exchanged at K3,000 in the black market. Therefore, there is a large gap between the YGEA’s price and the market price based on the black-market dollar rate.

Meanwhile, YGEA called for the gold shops in Yangon Region to sell the pure gold at K2,530,000 per tical, according to its notification released on 30 October 2022. The soaring dollar exchanging at over K4,500 pushed up pure gold price to a record-high of K3.7 million per tical in late August. In order for the gold price to decline, the Ministry of Natural Resources and Environmental Conservation has been selling gold ingots in Yangon, Mandalay and Nay Pyi Taw under the auction system. With an aim at reducing gold price, 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

Myanmar has been blacklisted by the International Money Laundering Monitoring Group (Financial Action Task Force – FATF). After the FATF meeting attended by representatives from more than 200 countries, including the World Bank and Interpol International Police, the Singaporean officer who chaired the FATF announced the inclusion of Myanmar in the blacklist.

Money laundering, the Paris-based FATF group formed by the Group of Seven developed countries. terrorist financing; Established in 1989 to protect against similar threats to the integrity of the global financial system, the group has added Myanmar to its blacklist, where only two countries were previously blacklisted, namely North Korea and Iran.

The blacklisting is expected to deal a blow to efforts to attract foreign investment after the military took over power in February 2021. Basically blacklisting Myanmar banks, With financial institutions, there will be more difficult notifications for international financial matters. This year, the value of the Myanmar kyat has fallen by about 60 percent compared to the dollar, a series of record-breaking devaluations, and it is on the verge of falling again.

Foreign direct investment inflows reached their lowest level in 2021 since Myanmar opened its doors to foreign investment in 2011. Even if the political crisis occurs, Foreign investors and worsening power outages; Policies that forced foreign currency to be exchanged for Myanmar kyats have scared away investments that are vital to the country’s thriving economy. The World Bank predicts that Myanmar’s GDP will stagnate this year after the economy shrank by nearly 20 percent in 2021. Furthermore, the International Labor Organization estimated that 1.6 million jobs were lost in Myanmar last year.

Source: The Global New Light of Myanmar

Those individuals involved in selling, buying and transactions of foreign currency without holding a foreign exchange business licence are facing legal action, according to the Central Bank of Myanmar (CBM). Those two businesses (Perfect Money and B to P Money Exchange) were found to execute illegitimate transactions of foreign currency through the digital platform (Facebook) without holding any valid licence of the CBM. They have been sued under Section 42 of the Foreign Exchange Management Law for breach of the provisions of Section 38 of the Foreign Exchange Management Law, according to the statement.

Afterwards, those entities engaged in illegal foreign exchange through the respective Facebook pages (Black Market Rate, USD Exchange Rate, Gold and Forex Trading, Gold and Dollar Market Dollar Buyer and Seller were found to violate the provisions of Section 38 of the law and the operators of those businesses will get sued under the Section 42 of the Law. On 12 June 2022, the CBM notified the people of the unauthorized mobile pay/ mobile wallet and digital money transfer businesses not to have unnecessary losses.

The CBM greenlighted 18 commercial banks, 10 banks for internet banking, eight banks for mobile payment, five institutions for mobile financial service, seven entities for transportation card and shopping card payment, and four companies for MMQR of merchant acquiring service under Sections 40 and 79 of the Central Bank of Myanmar Law, Section 5, 129 and 130 of the Financial Institutions Law, rules and directives of the mobile financial service and mobile banking business and e-payment to ensure safe and effective transaction and regulate the financial sector.

The list of those companies and financial institutions and service providers is notified on the official website of the CBM. At present, illegal mobile money service providers are posted on social media for mobile pay/mobile wallet service, transfer service between clients and payments for transactions of goods and services. The CBM warned the people of illegal transactions and digital financial service providers so that they will not lose their money. Those individuals involved in this will face a fine and/or sentence under Section 172 of the Financial Institutions Law, the CBM stated.

Source: The Global New Light of Myanmar

A Kyat-dollar exchange rate rose to K2,900 in the black market, while the Central Bank of Myanmar (CBM) set the reference exchange rate at K2,100. In order to strengthen the domestic currency in the local forex market, the CBM set the currency trading band at 0.3 per cent for Kyat to fluctuate between these two specified upper and lower exchange rates for transactions, selling or buying on 10 August 2022. Therefore, financial institutions including banks and informal money exchanges set a dollar value of K2,100 for buying and K2,106 for selling.

In spite of the trading band, the dollar transaction was made with the buying price of K2,930 and the selling price of K2,980 in the grey market. Additionally, the hard currency US dollar hit a high of over K4,500 in the forex market at August-end. 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. Last 28 September 2021, a dollar value hit a peak of over K3,000 in the black market, pushing pure gold up to K2.22 million per tical.

Under 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 17 December 2021 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 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