Raw gold metal imports improbable this monsoon season

Raw gold metal is unlikely to be imported from foreign countries in the current rainy season, said Chairman U Myo Myint of the Yangon Region Gold Entrepreneurs Association (YGEA).
Gold mines usually collapse in the rainy season. To avoid an unnecessary shortage, the association stated in May that raw gold metal would be imported this rainy season.
Nonetheless, global gold prices surged to US$1,800 per ounce in May and June. Although the prices have stayed below $1,800 per ounce since early August, Kyat’s depreciation against the US dollar forced the importers to suspend the plan.
“The import plan is yet to come. The association is still discussing with the officials concerned about dollar transactions. Only when we can buy dollars from the government can raw gold metal be imported. We are still seeking approval from the Central Bank of Myanmar,” said U Myo Myint.
At present, raw metals from some gold mines of the regions and states other than Yangon and the resales of imperfect items and scrap metals are circulating on the market. Although raw gold metal import is improbable for now, there is a sufficient stock of raw metal in the domestic market, he continued.
Additionally, the Ministry of Natural Resources and Environmental Conservation declared the sales of gold coins weighing one tical, 0.5 tical and 0.25 tical through state-run media on 2 September. The gold coins can be available every day except for the office holiday.
The floor price set by YGEA was below K2 million per tical (0.578 ounce or 0.016 kilogramme) yet the gold price peaked at K3.1 million per tical in the markets.
Additionally, the CBM’s reference exchange rate against a US dollar is set at K2,100, while a dollar is valued at K3,600 in the unofficial market. — NN/GNLM