CNI News

3 Oct 2022

Allowing fuel companies to make Yuan payments to the Central Bank of Myanmar will bring benefits for them, Managing Director U Htay Aung Kyi of Yangon-based Economic Development Initiative told the CNI.

The CBM announced on 1^st October that local fuel companies are allowed to repay foreign currencies they received from the CBM for fuel imports in Yuan.

As a result, fuel importers can bypass the shortage of US dollars and exchange rate discrepancies, U Htay Aung Kyi told the CNI.

“Generally speaking, allowing payments in Yuan is better than permitting the US dollar payment system alone. It is another option for companies. The more options they have, the better it is for you. One of the problems faced by fuel companies is payments in foreign currencies. It is beneficial for them to make payments in US dollars, Euros and Yuan.”

The CBM announced that it would accept payments for fuel imports in Yuan in accordance with the decision of the Foreign Exchange Supervisory Committee.

As local fuel companies engage not only in importing fuel but also in exporting goods to China, they have Yuan to make payment for fuel imports.

It seems that the CBM wants to diversify its foreign reserves to Yuan, an economist said.

He told the CNI that some companies import fuel and export rice to China and receive Yuan. When they import fuel, they borrow US dollars from the CBM. Now, they don’t have to exchange Yuan for US dollars to repay the loans and can make payments in Yuan. It is beneficial for them because the move reduces their transaction costs. Another factor is that Myanmar mainly exports commodities to China. I think the CBM wants to diversify its reserves to Yuan in addition to US dollars, Singapore dollars and yen it maintained previously.”

Myanmar imports fuel worth US$ 2 billion annually. As payments for fuel imports can be made in Yuan, the gap between the official exchange rate and market exchange rates can be narrowed, according to entrepreneurs.

CNI News

2 Oct 2022

Amid armed clashes, the number of freight trucks travelling to Sagaing Region in upper Myanmar has dropped and only those based in the region are providing freight services, according to Myanmar Highway Freight Transportation Service Entrepreneurs Association and truck drivers.

As some buses and freight trucks were attacked and authorities have imposed restrictions on some commodities in the region, freight transportation services and truck drivers refused to transport goods to Sagaing Region, Ko Khin Maung Myint, a highway freight truck driver, told the CNI.

“Truck drivers based in the region are still providing freight transportation services. Those from other states and regions do not travel to Sagaing because it is very dangerous for them and searches along the roads have intensified. Moreover, they do not know which commodities are restricted. In Monywa and Shwebo, restrictions have been imposed on travelling hours,” he said.

As there are few freight trucks travelling to Sagaing Region, merchants are not able to transport goods in time and have faced difficulties and stopped trading with the region.

Therefore, there might be shortages of commodities in the region, according to an official from MHFTSEA.

“Truck drivers do not want to go to Sagaing. There is no problem for them as they can go to other states and regions. However, merchants who are trading with the region have problems because the foodstuffs they send to the regions cannot be delivered in time. As merchants have problems, there may be shortages of foodstuffs in the region,” he told the CNI.

Currently, authorities have intensified searches in Sagaing Region and Myiek and Dawei in Tanintharyi Region. Sometimes truck drivers are forced to pay bribes at some checkpoints, according to a highway bus driver.

“Of course, there are concerns. We cannot travel peacefully during the conflicts. Currently, situation has deteriorated in Sagaing and Monywa. Authorities have intensified in lower parts of Myanmar like Myeik and Dawei. However, checkpoints I have to pass do not search vehicles but they ask for bribes, “ he told the CNI.

Armed conflicts have frequently broken out between the Tatmadaw and local PDFs in Shwebo, Depayin, Taze, Minkin and Kanni townships in Sagaing Region and sometimes freight trucks and passenger buses were stuck in armed conflicts.

CNI News

2 Oct 2022

No one has claimed responsibility for shooting a passenger plane which was landing at Loikaw Airport in the morning of 30^th September, triggering a blame game.

The SAC accused the KNPP and the PDF, which are active in Kayah State, of shooting the plane on 30^th September.

However, the KNPP, Loikaw PDF, Demawso PDF, Moyebye PDF, Pekhon PDF and the KNDF denied the accusation, saying Tatmadaw personnel are stationed around the airport.

The KNDF has engaged in fierce fighting with the Tatmadaw in Kayah State.

An official from the KNDF told the CNI that his forces did not shoot the passenger plane.

A map showing the location of the shooting.

He said, “It was a civilian plane. We have never instructed our troops to shoot at buses and planes. Ours is not such an organization and we have our own policies and principles. We never target civilians. We fight only with the junta.”

The SAC announced that a bullet fired by the KNPP and the PDF hit the fuselage of the plane on 30^th September, injuring a passenger on the right cheek.

The plane was carrying 63 passengers on its Yangon-Nay Pyi Taw, Loikaw-Yangon flight and landing at Loikaw airport when it was hit by a bullet.

SAC spokesperson Maj Gen Zaw Min Tun said, “When the plane was landing at the airport, members of the KNPP and the PDF shot it with small arms form the right of the runway. Shooting a passenger plane amounted to committing a war crime. It is necessary for the public and organizations that want peace and stability should collectively condemn the act. If something harmful had happened to the plane, lives of members of the public would have been endangered. Moreover, it was also an attempt to disrupt the transportation of local residents.”

Local infantry and artillery battalions were stationed around the airport, said an official from the KNDF.

The plane was hit by a bullet.

He said, “It was in no way possible for us to shoot the plane because the airport is surrounded by battalions of the Tatmadaw. Moreover, its landing and taking-off routes are also secured by the Tatmadaw. There are three battalions of the Tatmadaw near the landing runway. Tatmadaw battalions are also deployed in villages where fighting is ongoing. There is an artillery battalion providing heavy weapon support for their troops. It was in no way possible for our troops to shoot the plane.”

Fighting is ongoing between the Tatmadaw and joint forces of the KA, the KNDF and the PDF.

The clashes have displaced more than 160,000 people and at least 436 houses were burnt down, according to the ISP-Myanmar.

CNI News

1 Oct 2022

A passenger aircraft was hit by bullets while landing at Loikaw Airport in Kayah State and a male passenger was injured in the incident.

UB-149 Yangon-Nay Pyi Taw-Loikaw-Yangon flight was landing at the airport in the morning of 30th September when it was hit by bullets.

The XY-AML ATR-72(600) was carrying 63 passengers, according to a statement released by the SAC.

Forces of the Karenni National Progressive Party and the People’s Defence Force opened fire at the aircraft, ripping through the fuselage and hitting the right cheek of a passenger, according to the statement.

The aircraft that was hit by bullets.

The injured passenger was admitted to Loikaw People’s Hospital for treatments.

The KNPP and local defence forces did not release any statement until 11.55 am on 30th September.

The Karenni Army, the armed wing of the KNPP and PDFS are fighting against the Tatmadaw in Kayah State.

The fighting has already displaced thousands of local residents.

CNI News

1 Oct 2022

The public is likely to deposit their money in banks to get interest only after the inflation of the Kyat has stabilized, according to economists and financial experts.

Currently, private banks in Myanmar are increasing their interest rates to attract deposits.

Due to high rates of inflation, Myanmar citizens are investing in the property and gold markets by reducing their cash portfolio and are likely to deposit their money in banks only after the inflation has eased, Secretary U Ohn Myint of the Myanmar Gold Entrepreneurs told the CNI.

He said, “Internationally, when gold prices are to be raised, banks lower interest rates even to 0 percent. People were forced to withdraw their money and buy gold. When interest rates are raised, the public will choose the bank interest, which is guaranteed. As gold prices cannot be predicted exactly, they will choose bank interest. However, banks are still trying to rebuild public trust and it will take time. Another factor is that the public will live on bank interest only when the inflation is stabilized. When the inflation is rising, the public will continue to hold other assets.”

  Banking operations.

Recently, the AGD, a private bank in Myanmar, raised its interest rates for fixed periods during the promotion.

Similarly, the CB, the KBZ and the AYA banks raised their interest rates during their promotion periods.

The KBZ has offered 9.1 percent interest rate for at least MMK 10 million 100-day fixed deposits while the AYA raised its interest rates to 9.3 percent for deposits lower than MMK 5 million and 9.6 percent deposits higher than MMK 5 million.

An economist who requested anonymity said banks might be trying to attract money outside the banking system.

He said, “Some businesses do not get as much profit as bank interest rates but they are trying to survive for their workers and for the long-term existence of their businesses. Another factor is that money is circulated outside the banking system although it should have been circulated in the banking system. All transactions must be carried out through banks but the public has stopped using banks and money is circulated outside the banking system. So, banks are giving incentives by raising interest rates to attract deposits by raising their interest rates. Under rules and regulations of the Central Bank, private banks are required to reserve a percentage of deposits. It is possible that reserves at banks are too low to meet the requirements. We cannot say exactly because we cannot study the statistics. This might also be the pressure of the CBM. Moreover, withdrawal is higher than the deposits at banks, forcing them to halt their operations. The main role of the banks is to accept deposits and to lend them to borrowers. When they don’t have deposits, they cannot lend money. They are making profits on the gap between the interest rates between the deposits and lending. They cannot lend money if they don’t receive deposits.”

Banking operations.

Although raising interest rates is beneficial for depositors, it is questionable whether it will have the same effects for banks, said financial market observers and Myanmar economists.

They said banks should raise interest rates on fixed deposits but lower the rates on saving accounts so that money circulating outside the banking system will be redirected to the banking system.

The CBM has instructed private banks to set interest rates at minimum 5 percent for deposits, 10 percent lending rate on secured loans and 14.5 percent lending rate on unsecured loans.

CNI News

1 Oct 2022

Charter bus bookings have increased as people are planning to travel during the Thadingyut Holiday, charter bus services and tour operators told the CNI.

Chairman U Naung Naung Han of Myanmar Tourism Entrepreneurs Association told the CNI, “Booking has been full for some days. Families have hired four or five seaters’ vehicles while some have rented 10 and 15 seaters. Some companies are hiring 33 or 55 seaters to travel in groups. So, domestic tourism, which faced slowdown in August and September, has revived relatively. And Myanmar people rarely travel during the rainy season because the rain disrupted tourism. However, the number of travelers is still low compared to the normal levels. Only 10 percent of people travel in the rainy season.”

Similarly, the number of people who are seeking information about charter flights is also increasing.

Most people who have booked for charter buses are heading to pilgrim and beach destinations, tour operators told the CNI.

 Express buses from the GI group. (GI Group)

An official from the Shwe Ye Su Wai tour services said, “Most booked for 45-seater buses to PyinOoLwin, Bagan, Taunggyi, Inlay and Kalaw. They are not travelling to remote areas because of the deteriorating political situation. However, it is relatively better than the situation in the past but it has not returned to normal.

Currently, four- or five-seater vehicles and charter buses are mostly hired by passengers, tour operators told the CNI.

Rental fees range depending on models of vehicles and destinations.

Ko Wai Yan Htet of Waiyanhtet Travel in Mandalay told the CNI, “The number of travellers has increased. We charge them MMK 150,000 per charter bus from Yangon to Nay Pyi Taw. We charge MMK 220,000 for travel from Yangon to Mandalay. Travellers are required to bring their citizenship identity cards with them. Even if they don’t have citizenship cards, we provide services if they can provide household registrations and recommendations from wards and police stations. We have our own drivers. We do not accept bookings for our cars without our drivers,”

The tour industry has come to a grinding halt due to the pandemic and the coup but it has revived since April.

As the dry season starts in October and tour operators expect that the number of travellers will increase during the holidays including Thidingyut,Tazaungdaing, Christmas and new year holidays.

CNI News

30 Sept 2022

Uncertainties have loomed over the junta’s guarantee that it agreed in principle to create Wa State, Rakhine Politician U Pe Than told the CNI.

He said that allowing the Wa to create their own state would ignite disunity among ethnic groups in the area, prompting them to follow suit.

He told the CNI, “Under the 2008 constitution, it is just a promise of the junta. Even then, the junta said it agreed to create Wa State only in principle. It just means that 25 percent of the legislature have agreed to create Wa State in principle. When the matter is submitted to the legislature, voting will be conducted through the secret voting system and the junta will say it has nothing to do with the vote of the parliament. If the motion is rejected, it will say it has agreed to create Wa State but other parties reject it. So, the junta can even sow the seed of discord behind the scene and its guarantee is uncertain. It disclosed its position in principle and just the guarantee will not lead to creation of Wa State.”

He added that offering statehood to the Wa may have side effects.

U Pe Than said, “If the territories of other states are given to the Wa, there will be side effects and sow the seed of discord among local ethnic groups, who will also demand their own states and self-administered zones. So, it is a politically very sensitive issue. So, I think the Tatmadaw gave the promise as a short-term solution at the moment and there is no guarantee for it.”

Snr Gen Min Aung Hlaing meets leaders of the UWSA, the NDAA and the SSPP on 26th September, 2022.

The Tatmadaw agreed in principle to establish Wa State, which has the same status as other existing states, as demanded by the United Wa State Army during the talks between them.

It is unlikely that the junta will allow the Wa to create their own state, Myanmar Affair Observer Dr. Hla Kyaw Zaw told the CNI.

She said, “The junta leader has already told that EAOs can continue to retain their weapons only as border guards after the talks under his command. Think about how EAOs like the UWSA and the Mongla group accept this.”

It is stipulated in the 2008 constitution that territories of states and regions in the country can be redistributed if and as necessary with the approval of more than 75 percent of the legislature.

The NSPNC holds peace talks with leaders of the UWSA, the NDAA and the SSPP from 27th to 29th  September, 2022.

U Pe Than said, “Parliamentarians who represent the Wa or their allies are required to submit their proposals. The status the Wa has already secured is much higher because the existing states do not have any rights the relevant ethnic groups desire. We, who have our own ethnic states, were greatly surprised when we heard that the Wa demanded statehood. I can’t understand why the Wa, who have complete control over all their own affairs including security and defence, demanded statehood which is in essence nothing but a colony. There will be challenges in the future because they won’t have the status they desire.”

Currently, the USWA has its headquarters in its capital Pangkham known before 1999 as Pangsang by establishing departments including justice, education, administrative, revenue, security departments.

Under the 2008 constitution, the Wa Self-administered Region is made up of two districts, which comprise Hopan, Mongmao, Panwaing, Namphan, Matman and Pangkham (Pangsang) townships.

CNI News

30 Sept 2022

The auctioning of three visses of gold bullions and solid gold in Yangon and Mandalay respectively will not have any impact on the market, according to gold marker observers and entrepreneurs.

Authorities announced that the Ministry of Natural Resources and Environmental Conservation would sell three visses of gold bullion and solid gold through the competitive bidding tender system in Yangon and Mandalay respectively at 1 pm on 29th September.

Gold prices will fall if the government can supply enough gold to meet the demand and the current gold sales were too little to have an impact on the market, Secretary U Ohn Myint of Myanmar Gold Entrepreneurs Association told the CNI.

The announcement of SAC to sell gold.

He said, “Authorities announced that three visses of gold would be sold at the Gems Museum on Kabar Aye Pagoda Road in Yangon and at the corner of 26th street and 66th road in Mandalay respectively. It doesn’t mean that they will sell three visses of gold to anyone. They will sell three vissess of gold for each city. If the government can sell enough gold to meet the demand, gold prices will drop. The current gold sales of the government are too little to have an impact on the market.

The SAC has targeted to drag down gold prices to about MMK 2.5 million per tical and sold gold coins recently. Then, it sold gold bullions and solid gold on 29th September.

As local gold prices are calculated based on world gold prices and exchange rates, will gold prices decrease only when US dollar prices fall, according to gold entrepreneurs.

Last year, gold prices hit MMK 2.3 million per tical and fell back to MMK 2 million per tical. This year, gold price skyrocketed to MMK 3.8 million per tical and dropped back to MMK 2.6 million per tical recently. Gold prices would be stable at the current levels, said a gold market observer.

  A goldsmith shop in Yangon.

He told the CNI, “Last year, gold prices set a new record of MMK 3.33 million per tical. Then, the prices became stable at about MMK 2 million per tical. This year, gold prices set another new record of nearly MMK 3.8 million per tical, breaching their price ceilings. So, the prices fell back drastically by MMK 1 million to about MMK 2.5 or 2.6 million per tical. As the record gold prices last year were around MMK 2.335 million per tical, this year’s gold prices will be stable at MMK 2.5 or 2.6 million per tical if there are no significant factors affecting the market. Measures being taken by the government will not have impacts on the market. However, if the prices of US dollars nosedive, the trend may be different.”

As the gold bullions and solid gold sold in Yangon and Mandalay would be sold through the competitive bidding tender system, the highest bidder will have the chance to purchase them.

The SAC announced that it would sell gold coins as usual.

CNI News

29 Sept 2022

There is no other way to amend the 2008 constitution except the parliamentary process, SAC Chairman Snr Gen Min Aung said.

The SAC chairman made the remarks at the meeting of SAC members on 27th September.

The chairman said no one must turn a blind eye to the Constitution (2008) and the Nationwide Ceasefire Agreement-NCA, ethnic armed organizations have differing views due to instigations of local and foreign instigations and among the demands of EAOs is constitutional amendments.

He added that constitutional amendments can be made in accordance with the law through agreements reached by compromising on what both sides want to do and should do.

  Pro-democracy protests. (Frontier Myanmar)

He said, “Amending the constitution by vote at the Hluttaw amounts to integrity that reflects the respects for it as a democracy. Constitutional amendments can only be made through the Hluttaw process and there is no other way to do so. This must be carried out based on the Panglong spirit that reflects the unity of all national races.”

The Tatmadaw ousted the National League for Democracy Government by declaring a state of emergency after accusing the latter of attempts to form a new government without addressing voting list disputes in the 2020 general election.

Democratic forces declared the 2008 constitution null and void as no Hluttaw meetings can be convened while the Tatmadaw said it is still upholding the constitution, causing opposing claims.

The SAC is trying to restore stability and hold elections in August 2023.

However, fighting has broken out between the armed forces of the Spring Revolution and the Tatmadaw.

Snr Gen Min Aung Hlaing and leaders of the UWSA, the NDAA and the SSPP.

The SAC chairman said he is taking measures to hold a free and fair election and possible steps by trying to reach prior-agreements with EAOs.

He explained that a union will be built based on the 2008 constitution and the NCA and the election law and the law for registration of political parties will be amended.

Currently, the SAC is holding peace talks with 10 EAOs while trying to amend the constitution and to build a federal union.

On 26th September, 2022, Snr Gen Ming Aung Hlaing discussed the peace process with leaders of the UWSA, the NDAA and the SSPP, which submitted four proposals to establish Bamar State and to implement Panglong agreement, Panglong principles and pledges in order to restore equality among ethnic groups.