Gold price plunges but dollar soars in Myanmar after its New Year

Gold price plunges but dollar soars in Myanmar after its New Year

Published on Friday, 19 April 2013 23:58

As commercial activities resumed yesterday in Myanmar after 4-day of celebrating traditional New Year Water Festival, gold price has fallen US$56 per tical ($97 per ounce) but US dollar exchange rate against Myanmar currency 'kyat' (K) rose from K884 to K897.

A fall in gold price took place globally after Cyprus reported to sell off its 14 tonnes of gold holdings according to its central bank's bailout plan. The global gold price fell from US$1,580 per ounce in April's 2nd week to US$1,338 on April 12, although it recovered up to US$1394 per ounce yesterday.

This affected Myanmar's gold price whose fall ranged from US$56 to $86 per tical (0.576 ounce). A tical of gold was K739,500 ($840) on April 12 before the Water Festival, but it fell to K668,500 ($760) on April 18 when the market opened again yesterday. By that evening, the price was a bit up again and reached K691,000 per tical.

Win Myint, Secretary of Yangon Division Gold Entrepreneurs Association, said, "Due to financial crisis international banks sell off gold and it causes gold price fall globally. It leads to a similar fall in gold price in Myanmar. They are interrelated and so gold price in Myanmar will change depending on the global gold price. [We] won't control it. It will follow the changes in the global gold price."

Meanwhile, Myanmar currency 'kyat' has weakened against US dollar, and dollars are traded at higher than official prices in the market during the long holiday. The dollar price rose from K884 on April 11 to K897 yesterday in the market. In fact, the official exchange price was lower than that rate.

The exchange rate was set at K877 per dollar at authorized cash exchange counters on April 11 which is before the 10-day holiday for Myanmar New Year. Those authorized cash counters closed on April 12 to 21, and this was one factor which led to the rise in dollar exchange rate. They will open again on April 22.

Source: http://www.news.myanmaronlinecentre.com/2013/04/20/gold-price-plunges-but-dollar-soars-in-myanmar-after-its-new-year-2/