24K gold price skyrocketed in Myanmar domestic market
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NP News - April 9
Myanmar's gold price surged to a high of over 4,500,000 kyat per 24K by the end of March, jumping 100,000 kyats in a single day.
The Yangon Gold Industry Association's price for 24K gold is approximately 39,000,000 kyat per tical, while the market price for gold has reportedly soared.
As of early April, Myanmar's external market exchange rate has climbed steadily to around 3,900 kyat per dollar, with some speculating it could rise further.
The decline in export-earning businesses and domestic manufacturing and service industries has directly impacted the exchange rates between the Myanmar currency and foreign currencies.
To strengthen the Kyat value and prevent further market volatility, urgent measures are needed to address the challenges faced by local businesses. The current market conditions may further drive-up local gold prices and the value of the US dollar to unprecedented amount.
To address the situation, it is essential to take measures to reduce the demand for gold and US dollars in the market and promote exports. Currently, the prices of US dollars and gold are increasing in international trade due to continuous demand. However, official sellers are scarce due to domestic restrictions aimed at preventing manipulation of the exchange rate and gold prices.
In normal market conditions, there is a tendency for the domestic gold price and dollar exchange rate to rise, but the market price is ultimately determined by market demand.
Presently, with the control and monitoring of transactions, market demand is on the rise, leading to increasing prices. Should the US dollar price persist in its upward trend, experts predict that one tical of 24K gold could potentially reach 4,700,000 kyat before the Thingyan period.
Trade, the primary source of export earnings, has been disrupted by armed conflicts, leading to a depreciation of the Kyat. If border trade operations are halted at Tamu, Muse, Chinshwehaw, Lweljal, and Myawady border gates, and trade with neighboring countries ceases, the value of the Myanmar Kyat is likely to further decline. The domestic gold price and dollar exchange rate will continue to fluctuate depending on Myanmar's trade conditions, international gold and dollar prices.