CNI News
18 June 2025
Economic analysts and businessmen are discussing how Myanmar should manage the domestic gold, dollar, and fuel prices to prevent them from skyrocketing due to ongoing trade, political, and military conflicts among countries around the world.
Currently, there is a war between Iran and Israel in the Middle East, and protests against President Donald Trump are taking place across the United States.
Similarly, tensions between Thailand and Cambodia over a border dispute, between India and Pakistan over terrorism, and between China and India over territorial disputes are rising. An Iran-Israel war could have a significant impact on global oil and gold prices, but the SAC will only be able to control the dollar market, an economic analyst told CNI News.
"Oil is something that even other big countries can't control. It's difficult to control. But when it comes to dollars, it has a lot to do with policy. It can be controlled with policy. Because dollars are not as essential as oil. Because since the SAC took power, it has been linked to Thai baht instead of the dollar, linked to the Chinese yuan, and linked to India rupee. After the link, they accepted each other's money. And the dollar's share of international trade has also been gradually declining. It used to be around 70% to 80%, but now it's less than 60%. As the dollar's importance decreases, the need to rely on it becomes less and less necessary. Myanmar's main export is natural gas. Since natural gas is also exported to neighboring countries, it is also convenient to accept the currency of neighboring countries. If the SAC controls the dollar, it can control to some extent," he said.
While seeing the war between Israel and Iran
Market experts point out that domestic oil prices will rise depending on global oil prices due to the Iran-Israel war, and that if Iran's oil production decreases, it will depend on which country increases production.
Currently, the global gold price is on the rise, and the domestic and foreign gold price is around 8 million kyats. However, most gold shops in Yangon and Mandalay are currently closed due to the fact that some gold traders are being investigated by the relevant authorities and that the prices have been set by the Gold Entrepreneurs Association.
While the US dollar is falling in the global market, it is not easy to assess the dollar price in Myanmar due to domestic conditions and inflation, businessman U Aung Pyae Sone told CNI News.
While seeing gold and dollar
“In the past, the US dollar was used as a global currency. But now, the US itself is facing protests in some of its states. The Trump administration is in a tight spot. In such an international situation, the price of gold may currently be on the high rather than the US dollar. Since the US dollar is also dependent on the political and economic situation in the United States, if we analyze the dollar and the gold price, the gold price will remain higher. The dollar price is not yet stable. It's not easy to assess the dollar price because it changes depending on various circumstances," he said.
Currently, the price of diesel fuel is 2,410 kyats per liter, the same price as on the 13th June. In addition, this morning, the gold price is at 7,970,000 (over 7.9 million) kyats for pure gold, but the price set by the Gold Entrepreneurs Association is only 5.9 million kyats, and the dollar is also trading between 4,300 and 4,500 kyats per dollar, according to external prices.
