More than 100 traders sought business licences for gold trading and opening new gold shops, according to Yangon Region Gold Entrepreneurs Association (YGEA).
In a bid to end the black market and stabilize the volatile prices, YGEA urged the members and gold traders to make gold transactions with immediate payment. Cross-border trade is not allowed without reporting to the association, according to its statement released on 17 May. The statement includes seeking trade licences for gold shops, licences for gold bar transactions and taking action against those unauthorized dealers involved in online trade platforms.
Afterwards, YGEA is also granting recommendation letters for those gold traders who are applying for a licence.
This move will help curb manipulation in the gold market and cross-border illicit trade. Additionally, it will stabilize the gold market, U Myo Myint, chair of YGEA gave a remark.
Last October, YGEA also directed the gold traders in Yangon Region to apply for licence renewal for gold shops and gold refineries by separating the small, medium and large-sized enterprises. Upon applications, the YGEA will forward them to the Yangon City Development Committee, with its recommendation letter.
There are over 10,000 gold shops in Yangon Region. Annually, business licences expire at the end of December. Therefore, the shops are processing licence extensions for the coming year.
The price of pure gold is approximately K2,670,000 per tical (0.578 ounce or 0.016 kilogramme), while the YGEA set the reference price at K2,060,000 per tical.
The association determined the price depending on the Central Bank of Myanmar’s reference exchange rate against a dollar at K2,100. The exchange rate against the US dollar over-the-counter market is around K2,900. There is a large gap of around K600,000 between the current market price and YGEA’s set price.
Meanwhile, YGEA called for the gold shops in Yangon Region to sell pure gold at K2,530,000 per tical, according to its notification released on 30 October 2022.
The soaring dollar exchange at over K4,500 pushed up the pure gold price to a record-high of K3.7 million per tical in late August 2022. – NN/ GNLM