Yangon Region Gold Entrepreneurs Association (YGEA) has requested the State Administration Council (SAC) to resume the Telegraph Transfer (TT) system for gold export and import transaction, said U Myo Myint, chair of YGEA. At the present time, gold export has come to a stop after the international remittance for a gold transaction was changed from Telegraph Transfer (TT) to Letter of Credit (LC), he added. Gold export is not going well. Only through the TT system, the trade will go smooth.
If the transaction is permitted only with LC, the trade will completely halt. The YGEA has recently submitted a request for the resumption of TT payment system to the SAC. As per the notification released by the Ministry of Commerce on 12 August 2020, the transaction for gold export and import can be done only with the LC system. Myanmar is placed on the Grey List by the Financial Action Task Force (FATF). This inter-governmental body sets anti-money laundering standards. Therefore, the country needs to monitor the gold and jewellery exports and imports in order to ensure there is no illegal income.
According to Trade Department, the payment method was changed to LC as per the notification released by the Commission. The payment using LC can take about two months, cost banking service changes by two sides, and increase the charges for security matter in transport. Consequently, gold trading in the international market has also stalled due to volatile prices, YGEA stated. The domestic gold market might recover if the resumption of the TT system is allowed. Japan and the Republic of Korea primarily purchase gold and other jewellery pieces, and other tourists also buy them, the YGEA stated. Myanmar gave the green light to gold exports and imports in January 2018, with the aims of eradicating illegal trade, earn revenue for the country and maintaining the market’s stability.
Source: The Global New Light of Myanmar