Gold prices rise slightly in Myanmar amid introduction of new currency note
Sunday, 27 September 2009
YANGON, Sept. 26 (Xinhua): Gold prices have risen by 2 per cent hitting 590,000 Kyats per tical a day after Myanmar's Central Bank announced on Thursday night that a new denomination of 5,000 Kyats currency notes will be introduced starting from Oct. 1, according to gold trading circle today.
Gold prices in Myanmar stood at 576,500 Kyats per tical before the bank announcement of introduction of the new higher denomination of banknotes than the last highest one of 1,000 Kyats.
Despite rise of gold prices in the Yangon market, it was 576, 500 Kyats per tical on Tuesday when the world gold prices stood at 1,014 US dollars per ounce, still registering below the latter two days before the bank's move.
Observers here said that due to Myanmar's hard currency, domestic gold prices have not soared as much as expected and trading in the gold market was such that sellers exceed buyers.
Meanwhile, the market exchange rate of Myanmar currency Kyat against US dollar jumped by 6 per cent to 1,150 Kyats per dollar in the morning a day after the announcement but fell to 1,100 Kyats per dollar when it closed in the evening.
Two days before the announcement, the exchange rate stood stable at 1,080 Kyats per dollar, while that against FEC (foreign exchange certificate) was at 1,045 Kyats per unit.
Analysts predict that commodity prices will apparently go up when the new currency notes are put into circulation on the day set.
According to the announcement, all other legal tender currency notes and coins will continue to be in circulation.
The introduction of the new banknotes of 5,000 Kyats, which is five times higher in face value than that of 1,000 Kyats last introduced in November 1998, has drawn public concern and actual impact on the financial market and the commodity prices remains to be further monitored.
There has been 10 kinds of bank notes in circulation in Myanmar which are 50-pyas, 1- Kyat, 5-Kyat, 10-Kyat, 20-Kyat, 50- Kyat, 100- Kyat, 200-Kyat, 500-Kyats and 1,000-Kyat over the period of the past several decades.
Gold prices in Myanmar stood at 576,500 Kyats per tical before the bank announcement of introduction of the new higher denomination of banknotes than the last highest one of 1,000 Kyats.
Despite rise of gold prices in the Yangon market, it was 576, 500 Kyats per tical on Tuesday when the world gold prices stood at 1,014 US dollars per ounce, still registering below the latter two days before the bank's move.
Observers here said that due to Myanmar's hard currency, domestic gold prices have not soared as much as expected and trading in the gold market was such that sellers exceed buyers.
Meanwhile, the market exchange rate of Myanmar currency Kyat against US dollar jumped by 6 per cent to 1,150 Kyats per dollar in the morning a day after the announcement but fell to 1,100 Kyats per dollar when it closed in the evening.
Two days before the announcement, the exchange rate stood stable at 1,080 Kyats per dollar, while that against FEC (foreign exchange certificate) was at 1,045 Kyats per unit.
Analysts predict that commodity prices will apparently go up when the new currency notes are put into circulation on the day set.
According to the announcement, all other legal tender currency notes and coins will continue to be in circulation.
The introduction of the new banknotes of 5,000 Kyats, which is five times higher in face value than that of 1,000 Kyats last introduced in November 1998, has drawn public concern and actual impact on the financial market and the commodity prices remains to be further monitored.
There has been 10 kinds of bank notes in circulation in Myanmar which are 50-pyas, 1- Kyat, 5-Kyat, 10-Kyat, 20-Kyat, 50- Kyat, 100- Kyat, 200-Kyat, 500-Kyats and 1,000-Kyat over the period of the past several decades.