GOLD transactions still cannot be fixed on the Central Bank of Myanmar’s reference exchange rate amid the financial difficulty, said Myo Myint, the Yangon Region Gold Entrepreneurs Association (YGEA) Chair.
All foreign exchange earned by locals in Myanmar must be deposited in accounts at the authorised dealers and exchanged for the local currency at the Central Bank of Myanmar’s reference rate of 1,850 Kyats per Dollar within one working day, according to the notification released on April 3. YGEA called for an urgent meeting on April 8. YGEA resolved to carry out gold transactions depending on the CBM’s reference exchange rate at the meeting. However, it has not come into effect yet. “We have difficulty fixing the gold price on the CBM’S reference rate. The border market does not accept the set rate of 1,850 Kyats. Nonetheless, the transaction is done with the exchange rate margin,” Myo Myint was quoted as saying.
On April 23, officials from the department concerned, the YGEA and Mandalay Region Gold Entrepreneurs Association discussed gold price stability at the meeting. Gold transaction on the CBM’s reference rate, immediate payments, and avoiding price manipulation was discussed, he said. Current market condition impedes transaction on the basis of the reference rate. Yet, it will be implemented later, he continued.
The Dollar stands at K2,000 in the unofficial black market, while the CBM fixed rate is 1,850 Kyats. The gold price stands at $1,903 per ounce in the global market. Meanwhile, 24-carat gold is worth 2,045,000 Kyats per tical (0.578 ounce or 0.016 kg). The domestic gold price is highly correlated with the global gold price, YGEA stated.
