Posts in category: ECONOMY

The Mandalay Region Gold Entrepreneurs Association (MGEA) will sell about seven visses of gold (seven gold bars) each to individual in a bid to reduce the gold price. A gold bar weighs 10 ticals (one viss equals 100 ticals). The sales of pure gold bars will start on 7 October. The gold buyers can purchase them at the office of MGEA located on 67th street between 40thx41st streets in Mahaaungmyay Township, by presenting a citizenship scrutiny card. The association stated that they will offer a cheaper price in an attempt to control the volatile gold price.

The price of gold will be declared only at 2 pm on 7 October. Except for the members of the MGEA, anyone is free to buy them. At present, the price of pure gold ticked up to K2.6 million per tical (0.578 ounce or 0.016 kilogramme) in the domestic markets, tracking the mild rebound in gold spot prices in international markets and Kyat weakening against the US dollar. 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. The Ministry of Natural Resources and Environmental Conservation is, therefore, selling gold bars and coins in order for the gold price to ease.

Furthermore, the governor of the Central Bank of Myanmar (CBM) and officials of the Monitoring and Steering Committee on the Gold and Currency Market discussed matters regarding the stability of the gold and currency market and supporting plans of the banks for gold bar transactions to be made with banking system on14 September in Nay Pyi Taw. Then, on 30 September, the seven private banks opened special counters at the designated 48 branches to offer banking services for gold transactions.

According to CBM’s directive (43/2021) dated 3 November 2021, lump sum payments worth more than K20 million for buying or selling assets have to be processed with the banking system. The seven private banks are providing banking services by opening special counters at their 48 branches in Yangon and Mandalay regions and Mon State (Mawlamyine) to facilitate gold transactions with the banking payment system. Those banks are Kanbawza Bank (KBZ Bank), Co-operative Bank (CB Bank) PCL, Ayeyawady (AYA) Bank, Myanmar Apex Bank (MAB), UAB Bank, Yoma Bank and Ayeyawady Farmers Development Bank (A Bank).

Source: The Global New Light of Myanmar

The banks will not hike the interest rate and there are excess bank reserves for now, according to a statement (9/2022) of the decisions of the Monetary Policy Committee of the Central Bank of Myanmar (CBM) meeting. In order to tackle inflation, the committee considered whether it should raise interest rates or not.  The economic growth in the 2021-2022 financial year was 2.4 per cent, which is lower than the target of 3.7 per cent.

The committee decided at a meeting (5/2022) held on 30 May 2022 not to raise the interest rates as the country missed economic targets, cash deposits at the banks are declining, bank credit expansion still cannot happen and the currency in circulation of the banking industry just starts off. For the ease of inflation, the committee made the Minimum Required Reserves (MRR) ratio remain unchanged at 3 per cent after mulling over banking operations.

The committee raised the current account balance (CAB) of the bank institutions at the Central Bank from 2.25 to 2.5 per cent and lowered the bank reserves (cash) from 0.75 to 0.5 per cent. This way, the cash physically held by the banks will be deposited to the CBM and modifying reserve requirements will reduce the currency in circulation (CIC) and hope to steer the volatile inflation rate, as per the statement. Additionally, bank reserves are exceeding at present.

As the bank credit expansion cannot still happen, the committee decided to set an interest rate on the average excess CAB. The statement said it will initially create an interest rate corridor for the money market. Furthermore, to steer inflation, the committee also discussed issuing the CBM Bill as a monetary policy instrument. Regarding issuing CBM Bill, taking everything into account, advantages, procedures, setting face value and interest rate, types of issuing and payment methods were raised at the meeting and the committee determined to make the necessary preparations.

Source: The Global New Light of Myanmar

Kyat has strengthened against foreign currencies in the forex market. A dollar is exchanged for around K2,800. The hard currency US dollar hit a high of over K4,500 in the forex market in August-end. The current exchange rate is around K2,800 on 29 September. Similarly, a Chinese Yuan was worth K580 in August. On 29 September, the exchange rate of the Chinese Yuan fell to K400. Additionally, a Thai Baht was exchanged for K100 and K100,000 was valued at only 850 Thai Baht last month. On 29 September, the exchange rate of the Thai Baht against Kyat was K75 and K100,000 was converted into 1,330 Thai Baht.

Consequently, Myanmar Kyat rose in the forex market these days. The soaring exchange rates against the local currency last month caused the imports to nearly come to a halt, importers said. That being so, agricultural machinery and related equipment were exempted from obtaining import licence from 1 September, the Trade Department under the Ministry of Commerce notified on 31 August. In a bid to support the country’s agricultural development and facilitate the imports of agricultural machinery, 70 HS lines concerning the agricultural machinery and equipment were eased from licensing requirements.

Between 1 April and 16 September in the current financial year 2022-2023, goods worth $6.82 billion by sea and goods worth $978 million were imported into the country. Imports of consumer goods, capital goods, intermediate goods and raw materials by CMP businesses accumulated to US$7.79 billion. In the corresponding period last FY, Myanmar imported goods worth $6.345 billion from foreign trade partners, with maritime imports valued at $5.027 billion and imports through border channels worth $1.317 billion. Sea-borne imports were up by $1.78 billion yet border imports declined by $339.9 million compared to those recorded in the corresponding period last year. 

Source: The Global New Light of Myanmar

The price of pure gold continues to plunge to K2.7 million per tical (0.578 ounces or 0.016 kilogramme), according to the domestic gold market. The downward trend of pure gold in the domestic market is due to the fall in gold prices in international markets and the slide in the Kyat-dollar exchange rate. At present, gold price is US$1,630 per ounce and a dollar is exchanged at K3,100 in the black market. In late August, the dollar hit a tremendous high of over K4,500 in the unofficial markets. Following the depreciation of Kyat, the pure gold price reached a record-high of K3.7 million per tical.

The prevailing prices of pure gold are K2.7 million per tical for selling and K2.67 million per tical for buying. The governor of the Central Bank of Myanmar (CBM) and officials of the Monitoring and Steering Committee on the Gold and Currency Market discussed matters regarding the stability of the gold and currency market on the afternoon of 14 September in Nay Pyi Taw. At the meeting, the governor of the CBM remarked the further coordination of the departments concerned, gold bar transactions to be made with the banking system and operations of the banks, further support of the ministries concerned and the CBM to achieve price stability, and further cooperation between gold businesspersons and the officials.

The Ministry of Natural Resources and Environmental Conservation declared the sales of gold coins weighing one tical, 0.5 tical and 0.25 tical through state-run media on 2 September. The gold coins have been on sale at Nay Pyi Taw’s Gems Emporium from 5 September. Gold coins were sold at K2.95 million per tical on 5 September, K2.85 million from 6 to 13 September and K2.8 million from 14 to 16 September respectively. A citizenship scrutiny card and its copy are mandatory in buying gold coins cash down. The accumulated sales of gold coins stood at 455.75 ticals as of 16 September, according to the Press Conference of the Information Team of the State Administration Council held on 20 September.

The State’s gold coin market has expanded to Yangon and Mandalay regions from 23 September other than Nay Pyi Taw, the ministry issued an announcement through the state-run media on 22 September. On 28 September 2021, a dollar value hit a peak of over K3,000 in the black market, pushing the 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 the Gold and Currency Market was formed on 17 December 2021 as gold and currency market stability plays a crucial role in 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. Furthermore, the officials concerned will crack down on those people involved in charging a percentage for money withdrawals at the banks as shadow money.

Source: The Global New Light of Myanmar

Although Myanmar’s GDP showed minus in 2021, it sees two per cent GDP growth within six months after March 2022, according to the report of the Asian Development Bank. In 2021, the businesses showed almost a standstill for political changes and the GDP rate dropped to -5.9 per cent, the report said. The GDP growth is the result of prioritizing the local manufacturing sector and Myanmar’s businesses are running normally in the term of the State Administration Council.

Previously, according to the report of the World Bank, Myanmar’s economy will develop more than before, ADB forecast. Currently, the export incomes from the garment industry and SMEs are increasing slowly and it can develop to five per cent steadily by the end of this FY, according to ADB. In 2021, Myanmar’s economy drastically declined and the expenditure amounted to 23.74 per cent of GDP while the income amounted to 16.18 per cent of GDP and the deficit totalled 7.56 per cent of GDP.

In the first nine months of 2022FY, the country earned $669 million from foreign investment and it showed a decline of 82.2 per cent compared to the previous financial year, according to ADB. Moreover, the inflation rate was 17.3 per cent higher than in previous years. The government makes efforts to increase the export volume and the country earned US$7600.425 million from exports, $7461.545 million from imports and a trade surplus of $138.88 million between 1 April and 9 September 2022. According to the data of the Myanmar Investment Commission, the country received over $1.2 billion from 35 foreign investments until August 2022-2023FY.

Source: The Global New Light of Myanmar

The gold coin sales have expanded to new locations in the Yangon and Mandalay regions in addition to Nay Pyi Taw, according to the Ministry of Natural Resources and Environmental Conservation. The ministry declared the sales of gold coins weighing one tical, 0.5 tical and 0.25 tical through state-run media on 2 September. The gold coins have been on sale at Nay Pyi Taw’s Gems Emporium from 5 September. Gold coins were sold at K2.95 million per tical on 5 September, K2.85 million from 6 to 13 September and K2.8 million from 14 to 16 September respectively.

A citizenship scrutiny card and its copy are mandatory in buying gold coins cash down. The accumulated sales of gold coins stood at 455.75 ticals as of 16 September, according to the Press Conference of the Information Team of the State Administration Council held on 20 September. The State’s gold coin market has expanded to Yangon and Mandalay regions from 23 September other than Nay Pyi Taw, the ministry announced through the state-run media on 22 September. The sales price of gold coin for 23 September was not announced yet the pure gold was transacted at K2.8 million per tical in the grey market.

The ministry commenced gold coin sales intending to govern the price hike in the domestic gold market. However, domestic gold prices remain high tracking the soaring US dollar value against the local currency. Kyat is depreciated at K3,200 against the safe-haven US dollar in the black market. In late August, the dollar hit a tremendous high of over K4,500 in the unofficial markets. Following the depreciation of Kyat, the pure gold price reached a record-high of K3.7 million per tical.

The governor of the Central Bank of Myanmar (CBM) and officials of the Monitoring and Steering Committee on the Gold and Currency Market discussed matters regarding the stability of the gold and currency market on the afternoon of 14 September in Nay Pyi Taw. At the meeting, the governor of the CBM remarked the further coordination of the departments concerned, gold bar transactions to be made with the banking system and operations of the banks, further support of the ministries concerned and the CBM to achieve price stability, and further cooperation between gold businesspersons and the officials.

Last 28 September 2021, a dollar value hit a peak of over K3,000 in the black market, pushing the 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 the Gold and Currency Market was formed on 17 December 2021 as gold and currency market stability plays a crucial role in 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. Furthermore, the officials concerned will crack down on those people involved in charging a percentage for money withdrawals at the banks as shadow money.

Source: The Global New Light of Myanmar

During the week ending 20 September, the prices of onion and sugar bounced back at Bayintnaung Wholesale Market. Meanwhile, the prices of palm oil and chilli pepper slid again. Also, Chinese potato and black gram prices fell. Sugar fetched K2,550 per viss (a viss equals 1.6 kilogrammes) in the wholesale market.

Onion
The prices of large onions declined to K2,800 and Chinese onion prices plunged to K1,800 per viss. The price rose again on 17 September after the significant drop in supply to Yangon markets. About 42,000 visses of onions on 16 September and 36,000 visses of onions on 17 September were supplied to Yangon markets. Onions from the Seikphyu area did not enter the market then.

Following the entry of 72,000 visses of onions on 20 September, only onions from the Seikphyu area were set price at K2,800-3,200 per viss in the wholesale market. On 20 September, the maximum price of onions was K3,100 per viss at Seikphyu commodity depot and K3,000 per viss of onions at Pakokku commodity depot, according to the price data of those two regions.
Chinese onions were sold at K2,500 after the processing process. The price of Chinese onions which have the same size as those from Myittha Township stood at K2,650 per viss.

Garlic
On 20 September, the wholesale prices of garlic from Shan State (Aungban area) moved in the range of K2,800-4,000 per viss while Kyukok garlic fetched K4,000 per viss. The prices dropped from K4,200-4,800 per viss recorded in the previous weeks.

Potato
The price of Chinese potatoes decreased to K2,150 on 19 and 20 September after it hit K2,500 per viss.
Shan potatoes were priced at K1,500-1,700 per viss depending on quality. However, big potatoes are not found in the markets.

Chilli pepper
After chilli pepper hit the record price of K19,000 per viss for the second time, the rate went down to K17,000 per viss.

Palm oil
The wholesale reference price of palm oil in the Yangon Region this week declined by K40 per viss compared to the last week’s price. The reference price for a week from 19 to 25 September was set at K4,690 per viss.
Consequently, palm oil is volatile in the markets. The wholesale prices fluctuated at K7,600-7,800 per viss on 14 September, K8,800-8,900 on 17 September, K8,500-8,600 on 19 September and K8,000-8,200 on 20 September respectively.

Rice
Monsoon paddy harvest began. Low-grade rice started to enter Yangon markets at K42,000 per bag. The export price of broken rice was high at around K40,000 per bag. The prices of both high-grade and low-grade rice were stable in low demand. The prices are expected to slightly decline, traders aired their opinions.

Pulses
On 20 September, the prices of black gram (RC) slid below K2 million per tonne again after price fluctuation. The prices of various pulses stood at over K1,980,000 per tonne of black gram (Fair Average Quality/RC), K2,310,000 per tonne of black gram (Special Quality/RC) and K2,170,000 per tonne of pigeon pea (red gram) RC in Yangon and markets. 

Source: The Global New Light of Myanmar

Pure gold spot price fell again to K2.8 million per tical (0.578 ounce or 0.016 kilogramme) in the domestic market, tracking the slide in the Kyat- US dollar exchange rate in the local forex market. The US dollar is exchanged for around K3,100 against the local currency. In August, the dollar hit a tremendous high of over K4,500 in the unofficial markets. Following the depreciation of Kyat, the pure gold price reached a record-high of K3.7 million per tical. The gold price is approximately K2,830,000 per tical in the domestic market. T

he governor of the Central Bank of Myanmar (CBM) and officials of the Monitoring and Steering Committee on the Gold and Currency Market discussed matters regarding the stability of the gold and currency market on the afternoon of 14 September in Nay Pyi Taw. At the meeting, the governor of the CBM remarked the further coordination of the departments concerned, gold bar transactions to be made with the banking system and operations of the banks, further support of the ministries concerned and the CBM to achieve price stability, and further cooperation between gold businesspersons and the officials.

The Ministry of Natural Resources and Environmental Conservation declared the sales of gold coins weighing one tical, 0.5 tical and 0.25 tical through state-run media on 2 September. The gold coins are available every day except during office holidays. In September 2021, a dollar value hit a peak of over K3,000 in the black market, pushing the 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 the Gold and Currency Market was formed on 17 December 2021 as gold and currency market stability plays a crucial role in 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. Furthermore, the officials concerned will crack down on people involved in charging a percentage for money withdrawals at the banks as shadow money. 

Source: The Global New Light of Myanmar

Myanmar migrant workers can carry out inward remittances of foreign salary at K3,000 for a dollar from Hana Bank to KBZ Bank, Hana Bank Myanmar released a statement on its social media Facebook page on 15 September 2022. The exchange rate against the US dollar is set at K3,000. There is a two-step verification for the money transfer, the bank shared its statement on the page. There is no red tape like paper works and token system. The amount of money that can be withdrawn is unlimited as well. For any inconvenience, the customers can directly contact the representatives from the KBZ.

“For the salary remittance through the Hana EZ app, the customers must select SALARY in the purpose box when they register the recipient account. This way, the detailed banking information will mention SALARY or code no “5200”. When those people who have filled in the information just like that make international remittance, 1 US dollar will be exchanged at K3,000,” the Hana Bank’s official confirmed this on 15 September. “If they select other options except for SALARY, they will not receive the said exchange rate. They can re-register the recipient account and enjoy the aforementioned rate for sure,” Hana Bank Myanmar stated. There is no token system required to withdraw money with special accounts or other saving accounts. The money withdrawal is limitless as well.

The Central Bank of Myanmar (CBM) has recently directed local private banks to purchase the sailors’ foreign wages that are directly paid to their designated bank accounts at the maximum rate, as per the statement of the Myanmar Seafarers Federation (MSF). As a result of this, seafarers can receive a high exchange rate for local currency only when they put their foreign income into local banks. If they directly withdraw Kyat through regional agents in their own ways, the federation is uncertain about the amount of money that will be exchanged, as per the MSF’s statement. Myanmar migrant workers’ remittances amounted to US$6.152 billion over the past eight months, said Dr Pwint San, Union Minister of the Ministry of Labour. The remittance flows started in 2014 and the reports sent by the Central Bank of Myanmar stated that international remittance was carried out from Malaysia, Thailand, Singapore and other countries.

Source: The Global New Light of Myanmar

The Central Bank of Myanmar (CBM) has directed local private banks to purchase the sailors’ foreign wages that are directly paid to their designated bank accounts at the maximum rate, as per the statement of the Myanmar Seafarers Federation (MSF). MSF’s statement mentioned that the CBM released the directives concerning the use of foreign currency in late August. Myanmar seafarers need to realize those directives. Afterwards, the seafarers are also entitled to use their foreign wages in their own ways.

According to the discussion between the MSF and United Amara Bank and Ayeyawady Bank, a sailor can open a special account and foreign currency accounts together with his partner or his family member with whom he wants to pool his financial resources if he transfers his foreign income to Myanmar. A beneficiary can legally manage bank accounts when a sailor is out of the country. That co-owner can open more bank special accounts at the available branches and withdraw money. The private banks are directed to purchase the sailor’s foreign wages that came into the bank account at the daily highest rates of the banks, MSF stated.

Additionally, the seafarer is allowed to sell his foreign wages from his bank account to others. Yet, he must transfer money to another party within 21 days of deposit. Furthermore, they can also make foreign remittances for their personal cases such as supporting their children studying abroad or going abroad for medical treatment after reporting to and seeking approval of the authorities concerned through the bank. As a result of this, seafarers can receive a high exchange rate for local currency only when they put their foreign income into local banks. If they directly withdraw Kyat through regional agents in their own ways, the federation is uncertain about the amount of money that will be exchanged, as per the MSF’s statement. The CBM set the reference exchange rate of a US dollar at K2,100, yet a dollar hit approximately K3,300 in the black market. 

Source: The Global New Light of Myanmar