Burma Gold dealers start brisk selling as Kyat gains
An ounce of gold is priced at 1,425,646.96 kyat in early trade Wednesday while kyat exchange rate for the day is at 857 to the dollar, down from nearly 900 a couple of months ago.
For the first time in six months, Myanmar gold traders began to brisk sell the yellow metal for country's currency which is going through a recent spike in its value.
Gold prices in Burma dropped by nearly a percent following the recent drops in international prices while Burmese currency, the kyat gained against the dollar.
An ounce of gold is priced at 1,425,646.96 kyat in early trade Wednesday while kyat exchange rate for the day is at 857 to the dollar, down from nearly 900 a couple of months ago.
Analysts said the situation forced gold traders to sell all the gold they previously kept in stock They added that this has also triggered alarm among the millions of labourers and exporters who are paid in dollars but who convert their earnings into kyat.
They said gold shops were also running low on gold, which is traditionally stockpiled by Burmese as a more financially stable alternative to the kyat.
But given the dependence on gold, which is horded due to widespread distrust of Burma’s banks and to keep up with high inflation rates, the drop in price becomes more palpable.
Traders have also begun to stockpile Thai Baht, which as the dollar weakens can achieve better exchange rates with the kyat.
Although dollar-dependent exporters and labours have been the hardest hit, there are fears that a ripple-effect could see farmers suffer as demand for increasingly expensive agricultural exports falls. The phenomenon has also reportedly sparked a hike in basic foodstuffs and transportation charges.
Sumber : Google
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