Business

Central Bank warns against dollar speculation

According to state-owned newspapers, Kyaw Kyaw Maung, chairman of the Central Bank of Myanmar (CBM), has persuaded banks to not play the dollar market and accept plans to impose strict investigations.

A meeting in Nay Pyi Taw attended by representatives of the government, CBM and private banks discussed increasing exchange rate between the kyat and dollar.

Kyaw Kyaw Maung warned against deviation from the CBM’s regulations and to stay away from currency manipulation.

Japanese insurance company launches business in Myanmar

Japanese company Sompo Japan Nipponkoa Insurance announced the launching of its general insurance services at Thilawa Special Economic Zone.
 
It was the first foreign company to be granted a license on May 25 this year to open the insurance business.
 

Kyat continues to weaken

The kyat hit Ks1,290 against the US dollar on Monday although the Central Bank of Myanmar’s official reference rate was Ks1,230, according to a money market report.
The black market rate jumped as the CBM announced the official rate had risen from Ks1,125 to Ks1,200 to match the unofficial price.
The reference exchange rate was stable at Ks1,125 from July 3 to July 10 but it rose to Ks1,200 on July 12.

Thai goods become more pricey in Myanmar

The recent slump in the kyat has raised the prices of goods imported from Thailand particularly vehicles, said Myanmar traders.
A businessman dealing with a vehicle export-import business said that a car priced at Ks15 million two months ago, based on the baht-denominated value of Bt500,000, is now selling for Ks18 million.

Myanmar-Thailand border trade hindered by customs restrictions

Myeik – Myanmar merchants have faced difficulty trading at the Mawtaung border gate, located on the Myanmar-Thailand border in Myeik District, Taninthayi Region.
The Myanmar government opened its side of the gate on May 8, 2013. The Thai government opened a temporary border gate at Singkhon Pass on May 23 this year.

Thailand trade post fails to deliver

Myeik - The new trading post linking Myiek in Myanmar’s Taninthayi Region and Thailand’s Prachuap Khiri Khan still fails to live up to its promises, said Myanmar traders.
They have complained about customs restrictions and bribery on both sides of the border.

Rice trade continues to decline at China border

Bad weather and business conditions have contributed to a persistent decline in rice exportsfrom all regions of Myanmar into China, according to officials from the Muse Trade Zone on the Myanmar-China border.
Moreover, a drop in Chinese rice purchases andseveralrecent arrests of Chinese smugglers in Myanmarhave also contributed to the drop in exports at the Muse Trade Zone.

Rising deficit leads to gloomy forecasts

As of July 13, the Central Bank of Myanmar has raised the value of the dollar from Ks1,125 to Ks1,200 so as to equal the market price of Ks1,220. 
On the one hand, this move could benefit a few private banks owned by cronies close to the government and a handful of people who hold US dollars. On the other hand, most of people have to bear the brunt of high inflation and commodity prices. 

Trade with EU reaches US$152m

The Ministry of Commerce has reported that from the start of the financial year to July 1, there has been US$152 million trade between Myanmar and the EU, with Myanmar earning more than US$97 million from exports.

EU imports reached US$56 million.

During 2014-15, trade amounted to US$613 million with exports of US$291 million and US$320 million in imports.

Foreign firms accused of grabbing oil wealth

Total foreign investment in the oil and gas sector has amounted to nearly US$20 billion by the end of June this year, according to the Directorate of Investment and Company Administration (DICA).

Aung Ye Soe, managing director from Machinery and Solution Co Ltd, at talks on the potential of Myanmar’s oil and gas industry said: “According to the DICA, the oil and gas industry sees a year-on-year rise in investment. There is a massive inflow of foreign investment, based on the bidding rounds.”