YGEA requests shops to sell pure gold at K2,790,000 per tical

Yangon Region Gold Entrepreneurs Association (YGEA) appealed to shops and traders to sell pure gold at K2,790,000 per tical (0.578 ounce or 0.016 kilogramme) on 22 February 2023, under the guidance of the Monitoring and Steering Committee on Gold and Currency Market.
Meanwhile, the YGEA set the reference price of pure gold at K2,154,800 per tical on 23 February. The association issues the price every day except for its holidays. There is a large price difference of over K630,000 per tical between the YGEA’s reference price and the requested price.
The market price of gold rallied at around K2,860,000 per tical, showing a large gap of over K700,000 per tical with the YGEA’s reference price.
YGEA calculated the price depending on the Central Bank of Myanmar’s reference exchange rate of K2,100, with some addition, while the US dollar is exchanged at K2,860 in the unauthorized market. The price of gold in the domestic market is highly correlated with the gold spot prices and dollar exchange rate.
The soaring dollar exchanging at over K4,500 drove the pure gold price up to a record-high of K3.7 million per tical in late August 2022. For the gold price to decline, the Ministry of Natural Resources and Environmental Conservation has been selling gold ingots under the competitive bidding system in Yangon, Mandalay and Nay Pyi Taw.
With an aim of reducing gold prices, the YGEA and Mandalay Region Gold Entrepreneurs Association sold gold bullion supplied by the executive members and the members as well.
Under the guidance of the Central Committee on Ensuring Smooth Flow of Trade and Goods, the Monitoring and Steering Committee on Gold and Currency Market was formed on 21 January 2022 as gold and currency market stability play a crucial role in the trade facilitation.
The objectives of the committee are inspecting and prosecuting market manipulation, checking if there is compliance with payment rules or not in the domestic market, and proceeding against those unscrupulous traders who intend to interfere with the free and fair operation of the market under the existing laws, by-laws and regulations in line with the official directives, illegal foreign currency holding, illegal trade and taking legal actions against price manipulators. — NN/EM