YGEA calls for gold transactions below reference rate

Yangon Gold Entrepreneurs Association issued a request on 12 March to make gold transactions below the set reference price and avoid the spread of false news and price manipulation.


Those dealers are manip­ulating the market, resulting from the spreading of mislead­ing information. The authori­ties concerned are attempting to deal with market abuse, and inspecting and prosecuting market manipulation are be­ing undertaken.


Moreover, the CBM re­quested not to be involved in market manipulation to in­terfere with market stability. The YGEA set reference gold price at K3.7926 million per tical (0.578 ounce or 0.016 kilo­gramme) on 12 March.


By tracking the spot gold price rally to US$2,170 per ounce, the pure gold price rocketed to K4.05 million per tical in the unofficial domestic market.


Therefore, there is a price difference of K250,000 per tical between the YGEA’s reference price and the actual market value.


Earlier, the YGEA cal­culated the price depending on the Central Bank of My­anmar’s interbank reference exchange rate, with some ad­dition, in spite of the US dol­lar gain in the unofficial forex market, causing the price gap to widen to K400,000-500,000 per tical.


Following the CBM’s liberalization for authorized dealers for online forex trad­ing on 5 December 2023, the gap between the YGEA’s ref­erence price and the actual market value narrowed. The Kyat-US Dollar exchange rate is K3,650 at present.


The US dollar exchange rate, therefore, weighs on the gap between the domestic gold market value and YGEA’s ref­erence gold price.


The soaring dollar ex­changing up to K4,000 drove the gold price up to a record high of K4 million per tical in late August 2023. — NN/EM