CNI News

23 August 2024

There are reviews and discussions among businessmen, political analysts and financial experts regarding if there are other ways except for political stability to re-control the problem of the rapid decline in the value of Myanmar kyat at present.

The reason why the value of Myanmar kyat is declining and Myanmar people are facing hyperinflation is because of political instability and if there is political stability, the economy could be convenient to an extent, they reviewed.

There was no alternative but political stability to solve the problem and given the current situation, it was difficult to find an exit, U Htay Aung Kyi, a banking expert, told CNI News.

While seeing Thai baht and Myanmar kyat

" In my opinion, there is no medicine now. Two things are needed to solve this problem. The first factor is the method and the second factor is the financial strength. We don't have both of them. To call a spade a spade, foreign funds are needed. We need the help of other countries. We don't have both of them. According to the current situation, in my opinion, it's hard to find an exit." he said.

Every country whose politics was unstable did not face inflation; although Russia and Ukraine were at war, their currencies were normally operating because Ukraine was receiving international support and Russia was a powerful country, pointed out economic analysts.

Although the idea that political stability only would solve the problem is generally right, if Myanmar got enough foreign loans, depreciation of Myanmar kyat could stop, U Aung Pyit Sone, a businessman, told CNI News.

While seeing Indian rupee

" Although Myanmar is rich in natural resources, international sanctions have been imposed on Myanmar. Moreover, we don't get enough foreign loans. When there are political problems like this, international sanctions are lifted after which if they grant a political exit to the government, the people will be in comfortable circumstances as well; the devaluation of Myanmar kyat will also stop, I think." he said.

Although the State Administration Council is planning to hold the election for political stability, there are many challenges to do so, reviewed by political commentators.

During the preparation for holding the election, it was too hard to know to what extent the public would suffer the problem of devaluation of Myanmar kyat, pointed out businessmen, political commentators and financial experts.

Due to the devaluation of Kyat, foreign currencies only are reportedly accepted in the border areas.

CNI News

23 August 2024

China-Myanmar joint venture projects which are being carried out for the development of both countries would be protected, said Sr-Gen Min Aung Hlaing, chairman of the State Administration Council. 

He said the above when he met with Ma Jia, Chinese ambassador to Myanmar on 21st August 2024.

They discussed the latest political developments of Myanmar and joint venture projects which are being implemented for the development of both countries. In the same way, they also discussed matters relating to the promotion of defense cooperation; situations that security cooperation can be promoted; border area stability and reopening border trade gates. At present, battles are severely breaking out between the Myanmar Tatmadaw and opposition armed groups.

While chairman of the SAC was meeting with Chinese Ambassador on 21st August 2024

Among the projects invested by China in Myanmar, Tagaung nickel-processing plant in Tigyaing Township, Sagaing Region and the Alpha Cement Factory in Patheingyi Township, Mandalay Region have been captured by opposition armed groups.

Moreover, battles are severely breaking out between the Myanmar Tatmadaw and the Arakan Army (AA) near the Kyaukphyu Deep Sea Port in Rakhine State.

CNI News

23 August 2024

There would be battles in Chin State even after the revolution, Puzothang, Eastern Division Director from the ZRA told CNI News. 

Battles are breaking out among armed organizations representing ethnic groups; because of different policies, unity is disintegrating and territorial disputes could not be solved, he said.

" In my opinion, the unity of Chin State has been broken. In fact, we all must fight against the military council for the time being. As the Chin National Army or the Chinland Council, because they just have attitude that they will lead or direct, the unity has been broken. Because of their attitude, there are battles among Chin brothers. I want to put blame on them. The CNA said that it would crush down any organizations that don't join them in Chin State. They should change their policy. If this keeps up, the unity among Chin brothers will be broken. Even after the revolution, battles will be going on in Chin State." said Puzothang.

There should be brotherly relations among tribal armed organizations in Chin State and if they carried out with a view to building a federal union, it would be better, he said. 

While seeing the CNF

Although CNI News contacted Salai Htet Ni, information officer of the CNF/CNA, by phone to know more about the battles breaking out in Chin State, it has not been able to contact him.

After battles broke out between the CNA joint forces and the ZRA in Tonzang and Kyikha in May 2024, the CNA joint forces captured the two towns, according to Chin local news agencies.

Battles are breaking out between the Chinland Council led by the CNA and the ZRA as well as between the Chinland Council and the Chin Brotherhood Alliance that is made up of the armed Chin locals and the Arakan Army (AA) in Chin State, said a Chin youth.

In the same way, there is military tension between the AA and Chin armed groups in Paletwa Township because of territorial disputes. Among the states and regions in Myanmar, Chin State is the poorest and because of regional conflict, Chin people could suffer hardships more, said Puzothang to CNI News.

While seeing Paletwa Town in Chin State

" Chin people suffer a lot. Students can't attend school. Hospitals can't be opened as well. Staff also can't work. Many Chin people left for Mizoram State in India as refugees who fled battles. Chin people can't go out even within Myanmar, suffering hardships and hunger. Our state is the poorest of states and regions in Myanmar. We can get into trouble more in future." he said.

The ZRA is being active in Tonzang and Tedim Townships in Chin State as well as Kalay, Tamu Townships, Kabaw Valley region in Sagaing Region and along the India-Myanmar border.

The CNF is one of the NCA signatories and its headquarters is located in Thantlan Township, being active in Hakha, Tedim and Matupi Townships.

CNI News

22 August 2024

Stakeholders should follow the previous path of peace to end the conflict, former chairman of Dooplaya District of the KNU, Pado Saw Shwe Maung told CNI News. 

Solving political problems by armed means caused more damages and stakeholders should follow the previous path of peace which were agreed by leaders, he said.

" There were agreements of the leaders. If the agreements were carried out, good results would emerge one day or another. If so, damages and losses would be less. Nothing is perfect. while you are carrying out, if you fill in what you need, everyone will reach their good ambition. If armed means was used, both sides suffer losses. The public suffers the most." said Pado Saw Shwe Maung to CNI News.

While seeing leaders from the Tatmadaw, armed groups and political parties

The Nationwide Ceasefire Agreement was signed by the government, the Tatmadaw and EAOs under the government led by U Thein Sein and the UN, Britain, Norway, Japan, India, China, and the EU signed on the agreement as witnesses.

The NCA was signed by the Restoration Council of Shan State (RCSS), the Karen National Union (KNU), the Chin National Front (CNF), the Arakan Liberation Party (ALP), the Democratic Karen Benevolent Army (DKBA), the Pa-O National Liberation Organization (PNLO), the KNU/KNLA-Peace Council, the All Burma Students Democratic Front (ABSDF), the New Mon State Party (NMSP) and the Lahu Democratic Union (LDU).

A civilian government was needed to implement the peace process and according to the current situation of Myanmar, Myanmar could be the battleground of the world, former Pyithu Hluttaw U Sein Win told CNI News.

While seeing leaders of political parties

" According to the Tatmadaw, they want peace more. But it's a civilian government that can really implement the peace process. The civilian government must tell to make the Tatmadaw understand and to make opposition elements understand as well. This must be done for our common trust. Otherwise, Myanmar could be the battleground of the world." he said.

Armed organizations participating in the armed conflict should compromise with each other and some rights should be given to states, said U Sein Win.

After the Myanmar Tatmadaw took the power on 1st February, 2021, the KNU, the CNF and the ABSDF reduced their participation level in the NCA after which battles were breaking out between the Myanmar Tatmadaw and those EAOs.

Seven EAOs that have signed on the NCA formed themselves into the 7 EAO Alliance, they released on 18th March, 2024.

CNI News

22 August 2024

Because the value of Myanmar kyat has plunged, only foreign currencies are accepted more than before instead of Myanmar kyat, according to businessmen and locals. 

It was because the value of Myanmar kyat has not been strong; if the value of kyat stopped at some point, although there could be no problem, because the inflation rate was getting worse, the problem had emerged, U Aung Pyit Sone, a businessman, told CNI News.

" Because the exchange rate is unstable, you can't put blame on businessmen and shop owners in the border areas. Although those who don't accept their country's money within their country can be taken action against, you bought a product at 100 kyats and sold it at 120 kyats. But when you have to pay for it at 150 kyats again, it's not convenient. So, they will sell their products at Chinese yuan or Thai baht whose value is stable. If people who live in border areas earn foreign currency as their income, it's no problem. But while you earn Myanmar kyat as your income, if you have to use a foreign currency, it's difficult for your livelihood." he said.

Those who live in border areas had been using both Myanmar kyat and foreign currency at the same time since before. 

10,000 Myanmar kyat note and 5,000 Myanmar kyat notes

However, some shops in Muse City on the China-Myanmar border accept Chinese yuan only without accepting Myanmar kyat. Moreover, when fuel oil is bought at kyat, it can be bought on a limited basis, and if it is bought at Thai baht, it can be bought as much as they want.

It is necessary for local authorities to tackle the problem, pointed out people. The value of Myanmar kyat falls while that of foreign currencies rise. 

It means the country has gone poor, U Htay Aung Kyi, a banking expert, told CNI News.

" In comparison with other countries, our country has gone poorer. Mainly, the economic system has been wrong for a long time. If this keeps up, it's getting worse. The more the value of our country's money fall, the poorer our country is." he said.

The Central Bank of Myanmar reported on 14th August that it would raise bank interest rates starting from 11th September.

Because there is a wide gap of value between the Myanmar kyat and foreign currencies, those who live in border areas and businessmen are facing a crisis.

CNI News

 21 August 2024

China is committed to the "Myanmar-owned, Myanmar-led" peace process as well as supports ASEAN's role as the main channel, said Chinese FM Wang Yi. 

Chines FM Wang Yi, also a member of the Political Bureau of the Communist Party of China Central Committee, said the above during his meeting with Julie Bishop, special envoy of the secretary-general of the United Nations (UN) for Myanmar in Beijing on Tuesday (20th August), reported the Chinese state-owned News Agency, Xinhua.

"China is committed to respecting Myanmar's sovereignty, independence, national unity and territorial integrity, is committed to non-interference in its internal affairs, and is committed to the "Myanmar-owned, Myanmar-led" peace process. China supports ASEAN's role as the main channel." said Wang Yi.

While seeing Mr. Wang Yi and Sr-Gen Min Aung Hlaing

And then, the special envoy of the UN secretary-general on Myanmar plays a unique role; China stands ready to provide support and assistance to Bishop in performing her duties and play a constructive role in achieving political reconciliation and lasting peace and stability in Myanmar, Wang Yi told Bishop.

After that, Bishop said she is willing to maintain close communication and strengthen cooperation with China and ASEAN to reach a consensus on the proper handling of the Myanmar issue.

Mr. Wang Yi arrived in Myanmar on 14th August, 2024 and met with Sr-Gen Min Aung Hlaing, chairman of the State Administration Council and said that China would help and support the election that would be held by the SAC and wanted the election that would contain all the stakeholders as well as would help and support peace process.

While seeing Mr. Wang Yi and Sr-Gen Than Shwe (retired)

And then Mr. Wang Yi met with Sr-Gen Than Shwe (retired) and they discussed ensuring no foreign interference in Myanmar affairs and support issues from China for the stability of Myanmar.

Battles are severely breaking out between the Myanmar Tatmadaw and opposition armed groups across the country and towns and villages have been damaged while the number of people who had to displace has been over one million.

while battles were severely breaking out, Haigen discussion has been conducted five times between the Myanmar Tatmadaw and the Three Brotherhood alliance (AA,TNLA,MNDAA) in China at the Chinese government's mediation. Sixth Haigen discussion has not been able to be held yet.

CNI News

21 August 2024

Selling US dollars from the Central Bank of Myanmar whenever it was short of fuel could be convenient only in the short term, economic analysts told CNI News. 

Due to the current fuel problem, 100 million US dollars would be sold by the Central Bank of Myanmar, it reported.

Because the money used for fuel each day in Myanmar is more than 10 millions US dollars, the amount of US dollars that the Central Bank would sell just would be convenient in the short term; the government should not control the fuel and dollars so that it would be convenient in the long run, an economic analyst told CNI News.

" The government must not control the fuel and dollar so that it could be convenient in the long run. The purpose of controlling them is good. It intends in order not to make the prices of them go up and not to speculate the prices. But the government doesn't have enough dollars. In a situation like this, not controlling is the best. The market will control itself. But as a side effect, exchange rates might rise and so might the fuel. If the government has controlled, the prices will rise as well and the black market will be bigger as well. According to the current economic situation, both conditions will encourage higher prices. So, the government must choose a situation of abundant fuel and rising prices or a situation of fuel scarcity and rising prices." he said.

While exchange rates are unstable, if there is a small gap between the past and the present, although there is no problem for the fuel entrepreneurs, according to the current situation, they find it difficult; the Central Bank cannot sell dollars sufficiently, pointed out economic analysts. 

Moreover, the capacity of fuel oil storage tanks should be expanded, they added.

While seeing the people waiting to buy fuel oil

If the government asked fuel oil entrepreneurs to sell fuel oil at the prices designated, import permits should be given to them, suggested some businessmen.

If the government gave the permit like that, entrepreneurs could make a profit, the government must take responsibility and accountability. 

Otherwise, economic framework could blast and monopolies could emerge, U Aung Pyit Sone, a businessman, told CNI News.

" In my opinion, this is a situation in which the economic framework could blast. I don't want to encourage it because this type was used in Bangladesh and Sri Linka. The fuel stations which sell at the price designated by the government could enjoy the permits issued by the government or could enjoy something beneficial given by the government, which they did so. But what kinds of fuel stations will be those sell at the prices designated by the government. What fuel stations will havehow monopoly? The problem is how they will use the permits. How long will these fuel stations sell at the prices designated by the government? Five or ten years? How often will these permits be granted during these years? It may encourage the country's economic collapse. Entrepreneurs might have corruption as well." he said.

While fuel oil shortages began under the SAC, the public and dealers panicked. But later, fuel oil has been sold to each motorcar with a quota system.

The fuel oil shortage is not just happening in Yangon, and other cities including Mandalay and Naypyidaw are also facing fuel oil shortage. 

The Supervisory Committee on Import, Storage and Distribution of Fuel Oil would verify and carry out to tackle the problem, reported the SAC.

Moreover, Fueloil importer companies would have to submit their demands to the terminals and carry fuel oil to the fuel stations as soon as possible, stated the SAC.

CNI News

21 August 2024

It was necessary to manage rightly and supervise strictly if the cooperative system was implemented without fail so that the system could work, economic analysts and banking experts told CNI News. 

Indebtedness without being successful in implementing the cooperative system in the past was because of malmanagement, they pointed out.

If the cooperative system was activated without fail, it would be necessary to consider whether Myanmar had the same situations as those in France, Netherland and New Zealand whose cooperative systems were successful, U Htay Aung Kyi, a banking expert, told CNI News.

" First point, management must be good. Secondly, one or two points are not enough to meet the need. For example, Myanmar farmers who need capital are lent at the interest rate of 13 percent while Bangladeshi farmers are paying 4 or 5 percent. If so, would it be possible? This is just the financial sector alone. Other sectors such as management, technology, business industry structure and so on. There are six points that have to be supported at the same time." he said.

Those who were waiting in line to buy what they needed

The market economic system was used in a multi-party democratic system and there were industries in which the government could not participate. 

So, to facilitate those industries, the cooperative system was appropriate, said chairman of the State Administration Council.

Cooperatives were formed and productive industries should be improved; and then he wanted the associations to establish agro-livestock based factories and workshops, he said.

Moreover, the government would support capital, technology and other requirements and cooperatives would have to produce value-added products, he added.

According to the current situation of Myanmar, if the cooperative system was animated, the black market could be bigger, said economic analysts and banking experts. Moreover, it would not be convenient if the cooperative system was used all over the country, an economic analyst told CNI News.

While collective cooperatives in Ahlone Township were selling fish at lower prices during the Covid-19 pandemic

" It won't be convenient if the cooperative system is used all over the country. It might be used in a village tract or a township. In fact, the cooperative system intends to enable SMEs to work together rather than economic improvement. SMEs don't support the economy of the country a lot. It's just less than 25 percent. The remaining 75 percent are supported by heavy industries. The heavy industries don't need to be cooperatives. It's impossible that a cooperative system will lead the country's economy." he said.

The cooperative system is used only for small enterprises in other countries; if the system was reactivated in Myanmar, it would be convenient for small enterprises only, pointed out economic analysts.

Cooperatives could produce just one percent of the GDP of Myanmar and the private sector, 70 percent and the government sector, nearly 30 percent.

CNI News

 20 August 2024

The Shanni Nationalities Army (SNA) held a graduation ceremony of basic military training somewhere in a liberated area within Sagaing Region on 18th August, 2024. 

The event was held in Main Seng Tai Nai, headquarters of the SNA.

While a graduation ceremony of basic military training was being held by the SNA on 18th August 2024

The SNA is made up of four brigades and active along the India-Myanmar border, upper Sagaing Region and in Kachin State.

The SNA is a Shanni ethnic armed group that is making attempts to gain statehood (to establish Shanni State) after gathering Kalay, Tamu, Homalin, katha, Mawlike, Banmauk, Phaungbyin, Kawlin, Wuntho and Pinlebu in Sagaing Region as well as Bhamo, Myitkyina, Mohnyin, Mogaung and Indawgyi in Kachin State.