Japanese bank tests kyat currency hedge

Sumitomo Mitsubishi Banking Corporation is testing the use of forward exchange rate contracts in Myanmar, in response to clients eager for a way to hedge against kyat volatility. The Japanese lender is providing a forward contract to one of its Japanese clients, an official at the SMBC’s Yangon offices told The Myanmar Times. He said […]

Myanmar gold exchange to open in 2016

Myanmar’s first official market for gold and metal trading will open in Yangon early this year, U Khin Maung Han, vice chair of the Myanmar Federation of Mining Association, told The Myanmar Times. “Myanmar needs an official market for gold and metal,” he said. “Metal products must have fair prices and global-standard qualities. Otherwise, underground […]

Golden push for local market plans

The Myanmar Gold Entrepreneurs Association is pushing for a solution to the fractured local gold selling market through the introduction of a central exchange with strong rules. The market’s aim is to standardise criteria for quality and pricing in line with international standards, while bringing all trading to one place, said association secretary U Kyaw […]

Mandalay firms fight forex their own way

Betting the US dollar will continue to strengthen against the kyat, importers and distributors are raising prices to beat the exchange rate. “We set the price higher, but then offer promotions for our customers to encourage them to continue buying,” said U Hla Phone Kyaw, director of Rainbow Bridge Distribution Company, which imports high-end brands […]

Nearing last call for brewery dispute

The long-running ownership dispute between Singapore-listed Fraser and Neave and local military-linked conglomerate Myanma Economic Holdings Limited (MEHL) is reaching its end, as the two sides have agreed to proceed with the sale of shares in Myanmar Brewery later this month. Fraser and Neave will sell its 55 percent stake in Myanmar Brewery for US$560 […]

BTMU’s First Three Months Dealing Dollars in a Land of Kyat

Three months ago, Bank of Tokyo Mitsubishi UFJ (BTMU) won a race by hours to become the first foreign bank to have a branch in Yangon on April 22 this year. In the three months since, the financial behemoth has struggled with the kyat, but has overall found workarounds to the country’s schizophrenic economy. Like […]

Gold traders fret opaque exchange rate

Mandalay gold dealers are seeing their business complicated by the difficulty determining the daily kyat-dollar exchange rate, with dealers working to avoid too much volatility in price. While dealers had previously been able to simply ask money changers for the kyat-dollar rate each day, many dealers have been reluctant to do so since the unofficial […]

Central Bank raises exchange rate to meet the market price

The Central Bank of Myanmar has rapidly increased its rate for US dollar-kyat conversion over the last week, nearly catching up with the market rate. The Central Bank had left its official rate at K1027 per US dollar since February, though the rate charged by most money lenders and increasingly by commercial banks had climbed […]

Kyat steadily declines against other currencies

Myanmar kyat’s weakening against major foreign currencies has accelerated during President Thein Sein’s time in office. The currency rate has slided to K 1,070 and K 1,075 per one US compared to K 824 per one US dollar at the end of 2011 and early 2012. In November in 2012, the exchange rate was K […]

Black market dollar rate drops after CBM pressure

The exchange rate for the US dollar is going down on the black market as the Central Bank of Myanmar (CBM) applied pressure on private banks not to manipulate the market, according to private banks and black market dealers. The CBM warned the private banks on November 19 not to influence the dollar exchange rate […]