CNI News

30 October 2024

Reserve foreign currencies and gold stored in the Central Bank of Myanmar should not be sold more than necessity with a view to making the prices of foreign currencies and gold fall, pointed out economic commentators. 

Instead of solving for a short term by selling reserve foreign currencies and gold, the root cause must be found out and solved; as long as it could not be solved like this, one problem or another would be emerging, U Htay Aung Kyi, a banking expert, told CNI News.

" I had said there was a question: up to what time reserve foreign currencies and gold would be sold. In the demand and supply of foreign currency, the supply is weak, which is main problem. If the main problem cannot be solved, consequence problems will be existing. To be able to solve the root cause depends on our political and economic structures. I had said it was essential to change ways of thinking about the whole structure. As long as the root cause cannot be solved, consequence problems will emerge." he said.

The trip of the SAC chairman to China in November might have anything to do with financial cases and they have never found any countries that have progressed because of China. Sri Lanka and Bangladesh were examples, pointed out economic commentators. 

Although the trip could impact on Myanmar, it was necessary to carry out to make sure that Myanmar would not be like those countries, they said. 

Bar of gold, and dollar

If reserve gold and foreign currencies were sold recklessly, it would be difficult for a new government that would come to power through the 2025 election, an economic commentator told CNI News.

" The Central Bank of Myanmar very often sells foreign currencies. It never sold foreign currencies like this and the bank is selling reserve gold as well, which must be taken in account. Frankly speaking, a general election will be held next year. Without considering for the sake of the government that will come to power through the election, the bank will use reserve gold and foreign currencies as it like kind of because the prices of gold and foreign currencies have fallen and been stable." he said.

Sr-Gen Min Aung Hlaing, chairman of the SAC will go to China in November in order to receive help and support from China and he might borrow some loans from China, presumed economic commentators.

In negotiating and discussing so as to receive help and support from China, China might demand some things for its interests; as China wants to implement the One Belt One Road Project, it might demand Myanmar to implement the project, they made comments.