CNI News
12 March 2024
The price of pure gold within the country is between 39 and 40 lakh kyats per tical and the skyrocketing price of gold like that affects all classes, according to gold market analysts.
Due to the increase in the price of gold, foreign exchange rates are also increasing. Because of increase in foreign exchange rates, the prices of imported goods have also increased.
Although the increase in the price of gold didn't impact on the people directly, it was directly affecting the public, Ko Nay Lin, a gold market analyst, told CNI News.
While seeing the homecoming time of people from the basic class
" Anyone who has enough money can buy some gold. Although you might say that those who don't have enough money are not related to the gold price, when the prices rise and fall, it impacts on other places. So, you can't say that the price of gold isn't related to everyone. It impacts on everyone more or less. It is directly related to the dollar price. What is related to the dollar is export and import. What is related to imported products is consumer goods we are using. Now, even imports from abroad are limited. One is allowed to import only goods worth three hundred thousand dollars. So, the rise and fall of the price of gold impact on everyone more or less." he said.
Although gold entrepreneurs were called and inspected by authorities concerned to bring down the price of gold last year and this year, in addition to having no effect, the price of gold is increasing year after year.
The price of pure gold that was about 13 lakh kyats per tical in 2020 has reached until 40 lakh kyats at present. Because the rise in gold prices was a consequence of monetary inflation, it was not east to control; if the monetary inflation went on existing, the rise in commodity prices affecting basic class would go on, U Htay Aung Kyi, a banking expert, told CNI News.
While food products are being sold
" Rise in the price of gold is no problem because you can't blame the rise in gold prices alone. Its main cause is monetary inflation. It affects basic class. The middle class and upper class hold gold or dollars because of monetary inflation. During the past two or three years, the rate of monetary inflation is too fast. Its rate of inflation is faster than those of gold and dollar. All things considered, the main culprit is inflation. So, it will affect basic class." he said.
It was necessary to improve the economy of the country so as to bring down the rising prices of gold, foreign currencies and commodities because of monetary inflation, and the economy would only be good if the political situation was good, pointed out businessmen and economic analysts.
If the political and economic environments continue like this, domestic commodity prices will continue to rise.
