CNI News

1 September 2022

Although the Monitoring and Steering Committee on the Gold and Currency Market has formed three sub-committees to monitor and adjust the domestic production, demand and supply of gold, the prices of the precious metal have continued to rise, according to gold-market observers.

The more measures the committee has taken, the more rampant the illegal gold trade is, Ko Nay Lin Khant, a gold market observer, told the CNI.

Ko Nay Lin Khant said, “It is not true that the committee neither wants to control nor leaves the gold market itself. As there is a wide gap between the demand and the supply, the harder it tries to control the gold prices, the bigger the black market is. Gold prices range between MMK 2 million and 3 million per tical in the black market. There is nothing the committee can do. Gold trading is carried out in the black market. The official price set by the Yangon Region Gold Entrepreneurs’ Association is about MMK 2 million per tical.”

In the domestic gold market, the demand is higher than the supply and goldsmith shops are forced to shut their doors on some days.

Kyat and US$ banknotes. (ROMEO GACAD)

A wide gap between the supply and demand has been caused by hoarding gold due to worries over the depreciation and inflation of the kyat and rapid rises of foreign currency prices, according to gold entrepreneurs.

Therefore, the only thing the Monitoring and Steering Committee on the Gold and Currency Market can do is to adjust the prices but it is unable to solve the problems caused by the excessive demand, Secretary U Ohn Myint of the Myanmar Gold Entrepreneurs Association told the CNI.

U Ohn Myint said, “Although the committee monitors the market, the only thing it can do is to adjust the prices. It cannot soothe the worries of the public away. People are hoarding gold because they are worried about their money. In my opinion, merchants can use their market theories to soothe the worries of the public away. Prices depend on the supply and the demand. When the demand is growing, we cannot prevent the public from buying gold. If the public wants to buy 100 visses of gold, we must be able to sell 200 visses of gold. Buyers will stop purchasing gold. It is the best way. It is a market principle. If you tell the public not to buy gold, they will want to buy more.”

The State Administration Council announced that action would be taken against anyone who failed to buy or sell gold and US dollars at their reference prices.

A display cabinet of gold jewelry in a goldsmith shop. (Getty Image)

However, the YGEA set the gold price at MMK 2,025,000 per tical on 31 August, gold was traded at MMK 3.2 million per tical in the black market.

Gold market observer Ko Nay Min Khant told the CNI, “If the restrictions on US dollars are lifted, the gold market can be stable. The committee does not need to control the market too tightly. The more restrictions they impose, the worse the market is. It is important to lift restrictions on US dollars. If the government lifts the restrictions, the market will become stable. Now, people are hoarding US dollars because there is a shortage of US dollars in the market. The market is in chaos. If gold prices rise too high, people will hoard gold without holding any money. So, people who can buy gold are safe. However, the grassroots will bear the brunt. The local currency is depreciating rapidly.”

Gold market observers said that if gold prices continue to rise, there is no problem for people who can buy gold but the grassroot levels will bear the brunt of the depreciation of the local currency.

Gold prices, which hit MMK 3 million per tical in September, are likely to fall between MMK 2.5 and 3 million per tical at the end of September, according to gold entrepreneurs.

CNI News

1 September 2022

Non-violent politics only is the inclusive process in which the entire people can participate, Chairman U Ko Ko Gyi of the People’s Party told the CNI.

He said that they uphold non-violent politics and believe political crises can only be resolved through political means.

U Ko Ko Gyi said, “We uphold non-violent politics consistently. We believe that will a comprehensive political landscape emerge only if efforts are made to create a political form in which each and every individual of the people can participate and to reshape a political means in whatever kind of crises. Armed struggle is not inclusive for all the people. Non-violent politics is inclusive for all the people. As a political party, we will try to strengthen and guarantee such a kind of politics as hard as we can. At present, we are working relentlessly under misunderstanding and verbal abuses to reshape a political form in which everyone can take part and to strengthen political means. I would like to the public to help and cooperate with our relentless efforts by thinking calmly. We believe that we will eventually have to solve the crisis through political means.”

U Ko Ko Gyi, the chairman of the PP.

Since the takeover of the Tatmadaw on 1st February, an armed revolution and protests have emerged.Although it is generally true that not all people can participate in the armed struggle, all the people can participate and cooperate as soon as the National Unity Government stages protests against the military, Political Analyst U Than Soe Naing told the CNI.

  A pro-democracy protest. (The Frontier Myanmar)

He said, “It is generally true that not all people can participate in the armed struggle. The public is made up of various layers. Maybe 10 percent of them will cooperate with the junta and another 10 percent may be indifferent to the political situation. Despite being indifferent to the political situation, the public has supported the call of the NUG to protest the junta by closing the doors of their houses. This reflected the support of the public. It is not true that the people do not support or participate in the revolution. It can be seen for all at home or abroad that the armed struggle is not supported or participated one way or another by the entire people.

U Than Soe Naing also added that activities of some supporters of the junta should not be considered that not all people support the armed struggle.

Meanwhile, some analysts concluded that the general public prefers armed struggle to political means.

Fighting has flared up against the junta as allied forces of ethnic armed groups and local people defence forces are waging armed conflicts against the junta in Karen State, Chin State, Karenni State and Sagaing Region and Magway Region.

More than 20,000 houses have been destroyed and over one million people have been displaced during the conflicts.

CNI News

31 August 2022

Clashes could spill over the entire Rakhine State if the Tatmadaw and the United League of Arakan/Arakan Army fail to hold talks, Rakhine politician U Pe Than told the CNI.

He added that as the Tatmadaw and the AA reached an understanding to stop fighting for mutual benefits but have never entered a formal agreement, clashes could break out anytime.

He told the CNI, “They gave warnings to each other. Maj-Gen. Zaw Min Tun once threatened the public by warning the AA not to blame them if clashes break out. The AA also told the public that fighting could happen anytime because their administrative and judicial mechanisms are being disturbed. Under such circumstances, fighting could resume. Clashes cannot be limited to only one location because townships are interconnected. If fighting breaks out in Mrak-U, clashes can spill over central and southern part of Rakhine State. If both sides cannot hold negotiations, war will escalate immediately and spill over the entire state and a large number of people will be in trouble.”

Paletwa residents displaced by fighting between the AA and the military.

The Tatmadaw and the AA resumed fighting in Paletwa (Chin State) and Maungdaw (Rakhine State) recently and clashes spilled over Buthidaung, Rathedaung and Mrak-U.

On 28th August, a heavy weapon round fell in Kinseik Village in Mrauk-U Township, killing three residents and injuring at least five others.

If it is impossible to hold negotiations between the Tatmadaw and the AA, fighting will escalate. So, residents of Rakhine State are required to careful when travelling and to dig bomb shelters, Secretary Ko Zaw Zaw Tun of the Rakhine Ethnic Congress told the CNI.