The domestic gold price hit an all-time high of K4.56 million per tical (0.578 ounce or 0.016 kilogramme) again on 4 April after spot gold price reached a record high of over US$2,330 per ounce on 8 April.
At present, the kyat depreciated at K3,850 against the US dollar. Despite the gold price rally in the domestic market, the Yangon Region Gold Entrepreneurs Association (YGEA) set the reference price at K3,997,900 per tical, showing a large gap of over K560,000 per tical with the actual market value.
YGEA notified on 30 March that inspections were underway against those allegedly manipulating the market through a verbal deal.
Seven big gold shops in Yangon issue daily market prices three times a day. Nonetheless, those price speculators are attempting to raise the price by misleading price information that is not an actual transaction rate in the market. The YGEA condemned those unscrupulous traders and their dishonest acts. YGEA asked its members to inform law enforcement agencies of the news regarding those manipulators.
The authorities are inspecting those alleged price speculators with the verbal deal in the market.
CBM initiated an online trading market in which exporters/importers and private banks are engaged, with a view to developing the FX market and stopping price manipulation. The market exchange rates are officially announced on the FX market online trading platform. Additionally, CBM let the authorized money changers sell foreign currency as petty cash to those studying abroad, going on a pilgrimage and working abroad, according to CBM’s notification on 30 March.
Some unscrupulous individuals are attempting to manipulate the market by spreading misinformation from the verbal deal or sparking public concerns with malicious news about the volatile exchange rate. Some are also engaged in transactions without a valid licence, violating the existing laws.
They will face legal action under the Foreign Exchange Management Law. CBM also informed the people of accurate information and data released by the departments concerned and authorized money changers.
CBM constantly states that it is essential to dispel false news. Upon tips off, the authorities inspect the price speculators, and legal proceedings against them are officially declared, according to the notification released on 30 March. — NN/EM
