The pure gold price jumped to a new record high at over K2.5 million per tical (0.578 ounce or 0.016 kilogramme), said gold traders.
Kyat devaluation against the US dollar in the local forex market made the gold price high. The exchange rate against the dollar is estimated at K2,700 in the unofficial market.
The gold prices have risen accordingly. The precious yellow metal hit K2,500,000-2,520,000 per tical in the grey market.
Yangon Region Gold Entrepreneurs Association set the pure gold price at K2,086,000 per tical on 11 August, despite the price hike in the black market.
The association determined the price depending on the Central Bank of Myanmar’s reference exchange rate of K2,100, YGEA Chair U Myo Myint said.
Therefore, there is a gap of over K400,000 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, he 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.
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