August 15, 2022
As gold price climbs in international markets, pure gold price set by Yangon Region Gold Entrepreneurs Association has gained to over K2.1 million per tical (0.578 ounce, or 0.016 kilogramme).
In early August, gold prices stood at only US$1,770 per ounce in global markets. On 13 August, the price jumped to $1,802 per ounce.
The domestic gold prices have risen accordingly. On 13 August, YGEA set the precious yellow metal at K2,101,000 per tical.
Nonetheless, the prices reached record-high of around K2.6 million per tical in the grey market.
The rising gold prices are attributed to the effect of the continuous Kyat depreciation in the local forex market. The unofficial exchange rate against the dollar is estimated at around K2,800 in the markets.
The association determined the price depending on the Central Bank of Myanmar’s reference exchange rate of K2,100, said U Myo Myint, chair of YGEA.
Therefore, there is a gap of over K500,000 between the set price of YGEA and the informal market price. Consequently, the cross-border illegal market has arisen again.
The soaring safe-haven dollar value against the weakening Kyat in the domestic forex market halted pure gold bar transactions as well, U Myo Myint stressed.
Next, the authorities also interrogated some gold traders and currency exchange operators in end-July.
During the end of September 2021, a 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.
The objectives of the committee are inspecting and prosecuting market manipulation, checking if there is a compliance to payment rules or not in the domestic market, proceeding against those unscrupulous traders who intend to interfere in 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