Dollar exchange rate falls in Myanmar but gold price still high
The junta's Central Bank of Myanmar (CBM) infuses foreign exchange (FE) into the market more frequently these days with the exchange rate for the US dollar falling to around 5,000 Kyats against the dollar. The gold price, however, is still high in the domestic market as it also is in the global gold market.
The gold price in the global spot market on 17 September 2024 was US$2,576 per ounce. The Yangon Gold Entrepreneurs Association (YGEA) opened the price of Academy brand 24-carat gold at 5,219,762 Kyats per tical (approx. 16.3 grams) on the same day.
The YGEA gold price was around 5.02 million per tical at the end of August this year. The gold price later increased by nearly 200,000 Kyats per tical within two weeks.
The current gold price in the global market is at a record high. The price on 5 September was US$2,486 per troy ounce and rose to US$2,586 per ounce on 16 September. The current gold price in the open market in Myanmar is around 6.85 million Kyats per tical.
Since the CBM began recently selling dollars in the FE market more frequently the US dollar exchange rate fell to nearly 5,000 Kyats against the dollar.
The CBM sold US$17 million to fuel oil and cooking oil importers on 12 September. On 13 September, the CBM sold over US$200,000, over 1.5 million Chinese Yuan and nearly one million Thai Baht in the market. And on 16 September the CBM sold US$5 million at the exchange rate of 3,511 against the dollar on the FX Trading Platform.
The US dollar exchange rate rose to over 7,000 Kyats against the dollar in the middle of August this year. The dollar exchange rate then fell continuously after the CBM sold millions of dollars in the market.
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