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.

CNI News

20 August 2024

There are discussions regarding how to resolve the Myanmar political crisis among political and military circles while armed conflict within Myanmar is expanding.

Transportation and commercial activities cannot be carried out widely because of battles while a lot of border trade have been suspended. 

If the conflict could not be reduced, the people might face worse crisis and it might be difficult to reconstruct the country, Col. Khun Okkar, patron of the Pa-O National Liberation Organization (PNLO), told CNI News.

" Only when there is a political dialogue, will there be good politics. So, those who are fighting need to take part in discussion. And a political agreement is needed as well so that battles can be reduced and reconstruction can be started. But nothing can be done at the moment. It seems to be even worse if any change cannot be made. When one side threatens, the other bombs. So, the people may suffer trouble more. And the reconstruction can be more difficult as well. Everything is related to each other." he said.

Stability depended on armed groups' desire, a Kachin politician U Kwan Gawn Awng Hkam told CNI News. 

While seeing armed groups

" It's difficult to review what to do in the situation like this. It will depend on the desires of armed groups to be stable." he said.

Although armed conflicts have been taking place for over 70 years since Myanmar gained her independence in 1948, they have not been resolved up to now. 

Because of political disagreements that started on 1st February, 2021, battles broke out across the country and the battles reached the mainland where there were no battles in the past.

Because of battles, all the sectors of the country such as politics, economy, health, education, trade and so on are deteriorating and the people are facing higher prices, monetary inflation, insecurity and scarcity of job opportunity.

Some of EAOs and political parties, the ASEAN and some international organizations are making attempts to resolve the domestic conflict. But it has not been resolved as yet.

On the other hand, armed groups involved in the armed conflict are very keen on winning the battle decisively, reviewed the political circles.

CNI News
19 August 2024

The Public Security and Anti-Terrorism Supervisory Committee has been formed, reported the State Administration Council on 16th August, 2024.

The committee was made up of 14 members. The Union Minister for Border Affairs will take responsibility as the chairman and Deputy Union Minister for Defense, as vice chairman (1) and the Deputer Union Minister for Home Affairs, as vice chairman (2).

The members are Deputy Adjutant General, Deputy Quartermaster General, Deputy Commanders of Military Commands, border affairs and security ministers from States and Regions, Director General of the People's Police Force, head of the Myanmar Veterans Association, General Staff Colonel from the Department of Planning and Duty, Deputy Director of the Directorate of Militia and Frontier Forces, Deputy Director General of the General Administration Department, and Deputy Director General of the Fire Department. The chairman will choose and assign someone as the secretary.

CNI News
19 August 2024

Fuel black market became bigger in Yangon and the price reached 9,000 kyats per liter, sidecar motorcycle drivers told CNI News.

Sidecar motorcycle drivers could find time to queue up to buy fuel oil like other people and they depend on fuel from the black market. 

Some sidecar motorcycle drivers have reportedly suspended their work due to fuel shortage.

Because the price of fuel oil from the black market is three times more expensive than fuel stations, sidecar motorcycle drivers were finding it difficult, said a sidecar rental driver.

While motorcars are being queued to buy fuel oil

" It was easy to buy fuel at the fuel station in the past. It saved time. It was convenient for us because we had passengers to carry. But now because motorcar drivers have to queue up for a long time, it takes you a long time and you are tired. So, we have to buy fuel oil from the black market. The price of fuel oil is about 9,000 kyats per liter in the black market." he said to CNI News.

Fuel smugglers reportedly cooperate with private fuel station managers and are buying fuel and sell the fuel in the black market. 

Moreover, some of the motorcars that are lining up reportedly intend to sell the fuel oil in the black market. Some people were queuing to sell fuel oil in the black market without doing their daily work, said a resident of Yangon.

" Some people are waiting in line to buy and sell fuel oil as a business without doing any other work. They sell the fuel at the price three times more expensive than the fuel stations. Fuel station managers conspire with smugglers." he said to CNI News. 

While motorcars are being queued to buy fuel oil

Because of fuel shortage, private fuel stations sell the fuel only for a minimum of 30,000 to a maximum of 50,000.

The fuel shortage is happening badly all over the country. The Central Bank of Myanmar had planned to sell 100 million US dollars to fuel entrepreneurs, it reported on 14th August.

The Supervisory Committee on Import, Storage and Distribution of Fuel Oil would verify and carry out about it and licensed fuel oil importers must submit their demand at the terminals and fuel oil must be carried to the fuel stations as soon as possible, stated the State Administration Council.

CNI News
18 August 2024

Because speculations that President U Thein Sein (Retired) might participate in the interim government next year are emerging, businessmen who became much richer from economic recession are worried to become so, pointed out economic analysts.

After Sr-Gen Than Shwe (retired) handed over the State power to the government led by U Thein Sein, U Thein Sein opened all the economic opportunities and the economy improved as well.

Businessmen who have become more prosperous from taking advantage of economic recession (so-called cronies) are worried that U Thein Sein will participate in the current politics.

" Under the government led by U Thein Sein, there was no policy control. He opened all the economic opportunities. Those who are benefiting from the situation in which economic opportunities have been closed will be afraid of opening. When U Thein Sein came to power, because the military rule was changed into democracy, the international community accepted and welcomed as well as people local and abroad supported." said an economic analyst to CNI News.

While President U Thein Sein (retired) was on the way to China

Because President U Thein Sein (retired) changed from a centralized system to a democratic system, his government won the support from local and abroad. However, the current situation of Myanmar has gone back to a centralized system, the two situations were different.

When Sr-Gen Than Shwe handed over the State power to U Thein Sein, the political situation was stable and foreign investments entered. Moreover, exchange rates, commodity prices, prices of cars and SIM cards fell.

 In the same way, because the then-government was able to make importers import products and foodstuffs from abroad easily, the people were able to buy them at lower prices.

While President U Thein Sein (retired) was meeting with the Chinese President Xi Jinping

Because the current political situation is unstable, it is hard to say whether U Thein Sein will take responsibility in the government, said political analysts.

When the country was under the government led by U Thein Sein, although prices fell, in comparison with the global market, prices really did not fall, U Htay Aung Kyi, a banking expert, told CNI News.

" Prices must be right. If prices are not reasonable, it's not the market economy. For example, prices of cars - the price of a Harrier car was 240 lakh kyats at that time, but its price was only 150 lakh kyats" he said.

President U Thein Sein (retired) had good relations with foreign countries including China and recently, he went to China at the invitation of China and met with Chinese FM Mr.

Wang Yi, member of the Central Committee of the Chinese Communist Party and member of the Politburo of the Communist Party. During his trip, he shook hands with the Chinese President Xi Jinping.

In solving the current Myanmar's political crisis, the Chinese government wanted to form a transitional government led by U Thein Sein and to hold a general election, said domestic political analysts.