Posts in category: ECONOMY

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

Another five sets of EV chargers for battery electric vehicles (BEVs) arrived at Yangon International Airport on 11 February, according to the Steering Committee on National-Level Development of Electric Vehicles and Related Industries. The chargers were imported from China through NPK Motor Co Ltd.

They will be used in the 60 kW charging station at the Thabyaygon Market in Nay Pyi Taw. The first batch of five units of 60 kW electric vehicle (EV) chargers and two sets of 200 kW EV chargers arrived on 1 February and they will be used at charging stations at No 3 Tollgate on the Yangon-Mandalay Expressway, the Pyu bus station and Nay Pyi Taw Junction bus station.

There are forty electric vehicles, which are China-made BYD E2 models, have been imported and 10 electric vehicles will be used as taxis on a trial run at Yangon International Airport and another 10 at the Nay Pyi Taw Thabyaygon Market.

Source: The Global New Light of Myanmar

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 K2,850 for buying and K2,865 for selling on 10 February. 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. Some unscrupulous people were allegedly spreading fraudulent news to manipulate the market and attempt to make the dollar gain, stating that changing reference prices and repaying financing for the fuel oil companies, according to the statement.

The CBM injected liquidity into the banking sector. Approximately US$108 million were sold within 45 days in the market through foreign salary transfers. More amount will be put for sales. 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 reference price of gold climbed to K2.262 million per tical (0.578 ounce or 0.016 kilogramme) in the domestic market following the increase in global gold spot prices, Yangon Region Gold Entrepreneurs Association stated. At the end of last year, global gold spot prices stood at US$1,823 per ounce and the yellow metal was set at K2,147,500 per tical by the YGEA. As the price rallied to $1,920 in the international market, the reference price rose to K2,262,000 per tical. The figures indicated an increase of $97 per ounce and over K110,000 per tical. Despite the YGEA’s reference price, the pure gold spiked at K2,850,000 per tical in the unofficial market, showing a large gap of K580,000 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 K2,880 in the unofficial forex market. Meanwhile, Myanma Gems Enterprise (MGE) sold the gold at K2.5 million per tical despite the large gap. On 4 January, as a celebration of the 75th Anniversary Independence Day (Diamond Jubilee), new designs of 1 tical and 0.5 tical gold coins have been on sale at the respective shops in Nay Pyi Taw, Yangon and Mandalay of the MGE from 5 January 2023, along with other old coins. Pure gold is offered at K2.5 million per tical. The gold coin amounted to K2.58 million per tical, including making charges of K80,000. The final price of gold is K1.292 million per 0.5 tical with making charges of K42,000.

For 0.25 tical, the market value is K647,000 including making charges of K22,000. The price of gold in the domestic market is positively related to the global gold spot prices and dollar exchange rate. The soaring dollar exchange at over K4,500 pushed up the pure gold price 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 in Yangon, Mandalay and Nay Pyi Taw under the auction system. 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