CNI News
25 September 2023
After the licenses of more than 100 companies which did not comply with the rules and orders issued by the Central Bank were withdrawn, because the prices of foreign currencies have been stable, real estate and car prices have fallen, said economic analysts.
Because the sellers and traders relating to the prices of foreign currencies and US dollars were making extremely speculations, investigative teams have taken actions and at present, there is no one who obviously trades foreign currencies reportedly.
Because of investigation and actions like this, the price of US dollar has been stable and real estate and car prices have fallen. However, it can be effective temporarily, said Ko Ne Khant, US dollar and gold market analyst, to CNI News.
The lis of companies whose licenses have been banned by the Central Bank
" As you know, traders and brokers work for their greed. They won't do anything if there isn't any profit left for them. They performed some excessive actions as well. So, the government intervened. But the control is also a little severe. Arrests were instantly conducted. The Bureau of Special Investigation investigates even top officials. They don't dare to help anyone. Well-known cronies and real bosses don't stay in Myanmar any more. They usually go to Bangkok to avoid being investigated. The traders and brokers were asked to attend the meeting and they were arrested there. Anyone don't dare to trade obviously anymore. Arrests were conducted to make the prices fall. For the time being, real estate prices have fallen a little. Car prices also have fallen obviously. It can be said as a result. But how long will this situation exist? Those who will buy again are waiting for the time when the prices will fall. So, it doesn't make any difference. This modal is a little wrong. But it will work temporarily." said Ko Ne Khant.
The number of companies that exchange and sell foreign currency whose licenses have been suspended has reached 167 this year and one in January, 20 in March, 10 in July, 13 in August, and 123 in September.
While seeing the dollar exchange
Among the companies suspended, tourism companies, airlines, hotels, construction companies, jewelry companies and trading companies were included, said in the statement. Any more of actions might be conducted, said U Thet Zaw, an economic analyst, to CNI News.
" Some companies probably didn't provide complete information. And the companies that were trading in the black market were closed, I think. There were many companies that couldn't present necessary documents. They would be suspended. There will be anymore of actions, I think." said U Thet Zaw.
Although the Central Bank stated to sell and exchange one US dollar at 2,100 kyats as the reference price in April last year, in practice one US dollar was being traded at 3,300 to 3,500 kyats.
Because the companies that didn't comply with the reference price of the Central Bank, their licenses were closed reportedly.
Most companies had suspended trading because there was a wide gap between the reference prices and the market price, so their licenses were closed, said businessmen.
