The danger of Myanmar’s ongoing currency crisis, characterized by the sharp depreciation of the Myanmar kyat against the US dollar, must not be underestimated, said economist Dr. U Myint at public forum on the exchange rate at the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) in Yangon on August 4.

Over the weekend, the value of US$1 in the local market was set at K1,462 – K120 higher than last month. He explained that if earnings from exports in local currency are no longer able to cover the costs of production, huge losses will be incurred and enterprises have to close down. When enterprises close down, workers lose jobs, and farmers and fishermen cannot sell their products. When they cannot sell their products this year, they will not produce them next year. The economic, social and political consequences of this chain of events can be serious.

The economist compared Myanmar’s current crisis with Indonesia’s economic crisis in 1997, which led to widespread public riots and the fall of President Suharto in 1998. He highlighted that financial problem can become an economic problem, a social problem, a political problem, and a security problem step by step, eventually bringing down the government.

To raise the value of the kyat and strengthen the national economy, Dr. U Myint urged the government to buy up dollars in the domestic market, slowly reduce interest rates, and seek technical assistance from the International Monetary Fund (IMF).

He also urged the government to release macroeconomic data to the public in order to dispel the confusion and uncertainty that allows speculators to exploit the country’s economic woes.

Source: Coconuts Yangon

From 1 April and 29 June of 2018, total trade value reaches to almost $9 billion – nearly 4 billion worth of exports, and 5 billion worth of imports. The amount exceeds over $1 billion compared to the same period of 2017-2018 FY.

As for import, the country imported $1,815 million worth of capital goods, $ 2,082 million worth of intermediate goods and 1,097 million worth of consumer goods over the past three month period. Regarding export, Myanmar earns largest trade income from exporting manufacturing goods, which worth $ 2,198 million, followed by agricultural products with $ 710 million and minerals with $ 326 million in this 1^st Quarter of 2018.

Source: MOC

The amount of FDIs hit $ 394.87 million in this 1^st Quarter of 2018. This amount is almost $1 billion lower compared to the 1^st quarter of 2017-2018 FY.

Between 1 April and 30 June of 2018, MIC has approved 26 enterprises to invest in the country. The agriculture sector received one foreign investment with a capital of $5.6 million. The real estate sector also attracted one investment worth $2.8 million. Similarly, the hotels and tourism sector attained one FDI of $9.26 million. Over $88.9 million FDIs were flowed into other services.

By means of country, Japan stands 1^st position in the list with the largest investment of $85 million, followed by China and the United States. Similarly, Hong Kong, India, South Korea, Singapore, Viet Nam and the United States made investments over the past three months.

Source: DICA

The average inflation rate in late May stood at 4.29 per cent, a slight increase compared with 4.12 per cent in late April, according to the Consumer Price Index (CPI) and Inflation Rate by the Central Statistical Organisation.

In late May, Mandalay topped the list of inflation with 8.51 per cent, followed by Rakhine with 8.41 per cent and Ayeyarwady with 5.25 per cent. According to the year-on-year inflation rates, Mandalay region saw the biggest change at 11.38 per cent while the Union Territory saw the least change with 2.50 per cent.

Source: Eleven Media

In an attempt to control rising fuel oil prices, eight State-owned fuel filling stations will directly sell fuel at a fair price as of July 1, according to the Ministry of Electricity and Energy. Rising fuel prices are coupled with an increase in the global fuel price and currency exchange rates. The ministry will sell gasoline produced by Petrochemical Factory (Thapayarkan) under Myanmar Petrochemical Enterprise (MPE), at a fair price, to small vehicles and motorbikes.

The eight fuel filling stations are: one in Nay Pyi Taw, three in Yangon, two in Mandalay, one in Bago and one in Taungoo. In order to reduce rising fuel oil prices in local market, the Ministry of Electricity and Energy distributed three million gallons of A-72 gasoline at a price of Ks-3200 per gallon, to Myanmar Fuel Oil Importers and Distributors Association, at the end of April.

Source: Eleven Media

Exchange rate in mid-June was over Ks1,350 per dollar and reached Ks1,390 at the end of June. It then increased to its highest point of Ks 1410 per US dollar on 13 July. With the increase in the foreign exchange rate, the Central Bank of Myanmar (CBM) set the rate at Ks1,408 per dollar, recently.

According to a senior advisor to Kanbawza (KBZ) bank, the dollar-to-kyat interbank exchange rate is on the rise, because of the global political condition, not because of the local market condition. America’s increased tariff to China is one of the reasons for the increasing US dollar exchange rate. It is reportedly known that there is no US dollar demand in the local market. The exchange rate was on the rise throughout 2017 and hit an all-time record high of Ks1,380 per dollar.

Source: Global New Light of Myanmar

Building on the 2016 Agricultural Development Policy, MOALI, with the support of the Agricultural and Rural Development Coordination Group, drafted the five-year Agriculture Development Strategy with a corresponding investment plan. The aim of the ADS is to identify the investment priorities of the sector over the short, medium and long term.

The strategy also aims to accelerate growth in the sector through governance, productivity and competitiveness, driven by close cooperation between the government, farmers and businesses. Ideally, the strategy will promote inclusiveness, sustainability and resilience to climate change as well as development of the role of the private sector and farmers’ organisations in generating growth within the agriculture space.

Suggestions on improving connectivity to market infrastructure, information and communication technology infrastructure and power infrastructure are also included.

Source: Myanmar Times

U Set Aung, Deputy Minister for Ministry of Planning and Finance, and Mr. Ichiro Maruyama, Ambassador extraordinary and plenipotentiary of Japan to Myanmar, exchanged notes concerning the grant aid for the project for the development of financial market infrastructures, worth 5,549 million Japanese yen (approximately US $50.5 million) in Nay Pyi Taw on 14^th June. The project aims to enhance the functions of CBM-NET, which was introduced in January 2016; thereby, adapting to the changes of the environment surrounding financial infrastructure. The enhanced CBM-NET is expected to contribute to strengthening the Myanmar economy further.

Source: Global New Light of Myanmar

The Myanmar kyat has been depreciating against the US dollar in recent days. Starting from the middle of January, the dollar to kyat interbank exchange rate in Myanmar’s currency market dropped to Ks1,322. The exchange rate fluctuated around Ks1,327 from January to April, and the highest rate was recorded at Ks1,331 during that period. The rate went up above Ks1,340 per dollar in May, and it reached above Ks1,350 in mid-June, hitting the highest point of Ks1,405 per dollar on 29 June.  According to U Than Lwin, a senior consultant at the Kanbawza bank, the increase in the dollar exchange rate might be attributed to the global political and economic climate. There is no significant rise in border trade, and the demand for US dollars has decreased.

Source: Global New Light of Myanmar

The European Union (EU) and German International Economic Cooperation (GIZ) will provide Euro 22.5 million for Myanmar Fishery Sector Development. Fishery’s Development is implementing the five years plan, named MYSAP (Myanmar Sustainable Aquaculture Programme) from 2017 to 2021 and it will be undertaking as fresh water region and salt water region.

Source: 7Days News