Gold price hits K2.65 mln per tical despite YGEA’s set price at K2.045 mln

 August 23, 2022

The prices of pure gold gained over K2.65 million per tical (0.578 ounce or 0.016 kilogramme) in the markets although Yangon Region Gold Entrepreneurs Association set the price at K2.04 million per tical, gold traders said.

The association determined the price depending on the Central Bank of Myanmar’s reference exchange rate against a dollar at K2,100, U Myo Myint, chair of YGEA told the Global New Light of Myanmar.

The exchange rate against the US dollar over-the-counter-market is K2,800. There is a large gap of around K600,000 between the current market price and the YGEA’s set price. As a result of this, the black market grows again. Furthermore, the continuous Kyat depreciation in the local forex market against the hard currency resulted in the suspension of gold bar transactions, U Myo Myint elaborated.

The authorities also interrogated some gold traders and currency exchange operators in end-July.

During the end of September 2021, the dollar value hit an all-time high of over K3,000 in the gold exchanges and consequently, the pure gold reached a high of 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 play 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. — NN/GNLM