CNI News
17 August 2022
The Muse merchants reported said that there is a decreasing number of imports through China border due to the decline in the value of Myanmar kyat and the rise in the price of yuan.
In the beginning week of August, 1 Chinese yuan was only around 350 Myanmar kyats. However, the increase to 400 kyats this week has affected the importation processes including the fact that the number of imported cars from China to Myanmar is currently on the decrease, said the Vice President of Muse Rice Commodities U Min Thein to CNI news agency.
“Today, one Chinese yuan is about 415 Myanmar kyats. The ones on the line of exports have to send the goods abroad, earning foreign currency like exports to China. We are very lucky to be in this line of work. The importers who have to import goods back to Burma have to buy the goods with foreign currency. Purchases cannot be made with Myanmar Kyats. So, it was more difficult and inconvenient for them. About 50 cars could be imported previously but now only 30 cars can.”
Due to the rising exchange rate caused by the price of yuan that has been rising continuously these days, the price of the imported goods from China is also escalating, said the merchants.
Seeing a Chinese border trading post
As a result, some importation processes have come to a halt, subsequently leading to a shortage of goods, thereby negatively affecting the truckers who drive the freight goods, said a Muse truck driver Ko Thant Zin to CNI News Agency.
“We get about 3 / 4 times a month. There are also times when we get 4 / 5 / 6 times. But now it’s only once a month. There are also merchants who keep on going. Those who don’t see any profits stopped going. There are already many traders who do not go. If the flow of goods is disrupted, the difficulty is that freight cars will grind to a halt,” he said.
It is said that in addition to not having an increase in freight charges despite the rise in the price of yuan, the truckers are also facing an accelerating price of fuel.
According to traders, although the importers are facing difficulty due to the rise in the price of yuan, the situation is beneficial for exporters. Therefore, there are currently more truckers entering the export market of China.
Previously, there were only 10 to 15 cars per day in the export of rice and grain rice but there are almost 20 units entering now according to Muse rice commodity depot.
