Local gold price in Myanmar outpaces to over 3m Ks. per tical following record-breaking forex rate
1120
Hsu / Phoo Pyae (NP News) - Sep 1
Gold market in Myanmar rocketed up to more than 30m Ks. for one tical of 24K gold on August 30, 2022. The price has broken the local record although world gold market is stable.
As a matter of fact, market rate is higher than the reference rate set by Yangon Region Gold Entrepreneurs Association (YGEA).
According to the YGEA, the reference rate for one tical of gold was 2,034,000 Ks. while the market price is comparatively higher up to more than 30m Ks.
The price set by the YGEA is meant to be the floor price.
“The gold price is increasing because the exchange rate is soaring and it is rather arbitrary price without actual transaction. Supply and demand in the dollar market isn't reaching balanced. It means that the market is being manipulated by the traders who are trying to collect gold in the market since the grassroots aren’t afforded to buy it.” a gold trader said.
In March 2022, one tical (16.32 gram or 0.576 oz) of 24K gold was round about 2,000,000 Ks. while the world gold price at that time went up to 1,990 USD per oz.
However, the world gold price at present is 1,734 USD for one ounce while the domestic price dramatically rose up to more than 3m Ks. per a tical.
The meeting held on August 27 in Naypyidaw directed the YGEA to conduct gold trading in banking instead of cashes.
Gold production in Myanmar usually lowers in monsoon. Therefore, it will be risen up when opening season is reached again.
A gold trader recounted, “Only the 24K gold is high in demand at present in the market.”
Currently, the Central Bank set reference forex rate with 2100 Ks. officially. However, the market forex rate for is more than 3600 Ks. per dollar.
For Reference:
(One ounce of pure gold is equivalent to 1.875 tical locally. One ounce of gold in global price is divided into 1.875 tical and the resulted number is multiplied according to the local exchange rate. The result is the local gold price for one tical)