Gold bars halted due to central bank restrictions

Market analysts say the black market on the Rangoon Gold Market could be halted and a black market could emerge as the central bank under the military council restricts the trading of the local gold price based on a fixed exchange rate.

As of 1pm today, April 22, the world gold price is at $ 1,953 an ounce.

Therefore, based on the current global gold price, the exchange rate set by the central bank is 1,850 kyats, and the local academy (light) gold price is 192,000 kyats per kyat.

However, since the value of one US dollar on the black market is at least 2,000 kyats, the local academy (light) gold price is 158,000 kyats per kyat, which is 157,000 kyats per kyat.

Gold traders say the academy (light) gold trade in the Yangon Gold Market is currently stalled due to the price difference.

A gold trader said, “It is not convenient because the difference between the outside price is about 150,000. That is why trading is currently on the market. It stays in the market, but outside it cannot be stopped. In gold shops, there are sellers and sellers. The buyer is there for you. But the academy (light) gold bar sales have stopped. In fact, commodity prices are not limited. If limited, the black market will emerge. By releasing the market, the person who wants to sell can sell at a bargain price. Buyers are likely to call everyone who looks appropriate, if there are only a few. If people can buy when they want and sell when they want, no one will pay attention to it. “Otherwise, the market will be in turmoil if we go and restrict it,” he told DVB.

A market researcher said, “Uncle, we have experienced this before. It was in 1996. That is the current gold price of 54,000. I was told to sell at that price. When we did that, the outside price was 75,000. There are around 80,000. He put it on the counter today at 54,000 gold. So, when you want to resell, at a price set by the government, only the basic people are affected. For those who have money, it does not matter. Because he will buy because he has money, will you sell it at the government fixed price? If you can’t sell it, you can. He has money. But those who have no money have to sell it for money. It hurts him because he has to sell at the price set by the government. Therefore, it is not possible to set commodity prices in this way, ”he told DVB.

According to the decision of the Plenary Meeting held at the Yangon Division Gold Entrepreneurs’ Association on April 8, it was decided to trade based on the fixed exchange rate, and to negotiate and maintain price stability.

At 1:05 pm on April 22, according to the Yangon Region Gold Entrepreneurs’ Association, the world gold price was US $ 1,953 per ounce and the local academy gold was 208,000 kyats per kyat.

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