Domestic gold market be traded as per Central Bank’s forex rate
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Khit/ Phoo Pyae (NP News) - April 10
The price of gold traded in the local market will be based on the dollar exchange rate set by the Central Bank of Myanmar, Yangon Region Gold Entrepreneurs Association (YGEA) determined on April 8 during its executive meeting on local gold price stability.
“We traded the gold in domestic as per the floating price before. Now we will engage it as per the forex rate set by the CBM. We calculated 1 USD with 2,000 MMK before. Now we will calculate 1,850 MMK for a dollar as the authority determines the ER. We adjust our policy in line with the government’s policy change. This pricing strategy will be ongoing as long as the CBM hasn’t changed next one,” Myo Myint, chairman of the YGEA told the NP News.
The YGEA announces the daily price of the 24K gold and calculated it based on the local forex rate and the world gold price.
“We multiply the world gold price and central bank’s ER, and then divided it by 1.875 to have the selling price in the country,” Myo Myint said.
The domestic gold market is currently inactive by virtue of skyrocketing gold price having the transactions only between 15 visses (24.5 kg) and 20 visses (32.7 Kg) per day at the YGEA. Gold prices are expected to fall after the Thingyan festival, according to the data from the gold market.
According to the YGEA’s April 7 closing price, the local gold price was 2,041,000 MMK (estimate 1100 USD) per tical while the world gold price was 1,925 USD per ounce.