on the Rangoon Gold Market could be stopped and a black market could emerge as a result of restrictions imposed by the central bank under the military council on the trading of the local gold price based on a fixed exchange rate.
The global gold price is currently $1,953 per ounce as of 1 p.m. ET on April 22.
Therefore, the local academy (light) gold price is 192,000 kyats per kyat, and the central bank’s exchange rate is 1,850 kyats based on the current global gold price.
However, considering that one US dollar is worth at least 2,000 kyats on the underground market, the local academy (light) gold price is 158,000 kyats per kyat, or 157,000 kyats per kyat.
Gold traders claim that the price difference is holding up the academy (light) gold trade in the Yangon Gold Market at the moment.
“It is not convenient because the difference between the outside price is approximately 150,000,” a gold trader stated. Because of this, the market currently allows for trading. It remains in the market, but it cannot be stopped outside of it. There are buyers and sellers in gold shops. The buyer will support you. However, sales of academy (light) gold bars have ceased. In point of fact, commodity prices are not constrained. The black market will emerge if it is restricted. The person who wants to sell can sell for a low price by letting the market open up. If there are only a few, buyers will probably call everyone who looks good. No one will pay attention to it if people can buy and sell whenever they want. If we restrict it, the market will be in turmoil, otherwise,” he told DVB.
“Uncle, we have experienced this before,” remarked a market researcher. The year was 1996. That is the current value of $54,000 for gold. I was instructed to sell for that amount. The outside price was 75,000 when we did that. Around 80,000 exist. He listed it today as 54,000 gold on the counter. Therefore, only the basic people are affected when you want to resell at a price set by the government. It makes no difference to those with money. Will you sell it at the fixed price set by the government because he will buy it because he has the money? You can sell it even if you can’t. He has cash. However, those without money must sell it for money. He is hurt because he must sell at the government-set price. As a result, commodity prices cannot be set in this manner, he told DVB.
The Plenary Meeting, which took place on April 8 at the Yangon Division Gold Entrepreneurs’ Association, decided to trade using the fixed exchange rate, negotiate, and keep prices stable.
The Yangon Region Gold Entrepreneurs’ Association reported that the world gold price was US$1,953 per ounce at 1:05 p.m. on April 22 and the local academy gold price was 208,000 kyats per kyat.