Myanmar set to turn into major gold exporter
Myanmar`s Ministry of Commerce is in the process of officially removing a regulation that prevented traders to export gold for more than five decades, according to a report in The Myanmar Times. The ministry will remove the metal from the restricted exports list and also open a service center near in Yangon to handle the legal trading of gold, advise traders and issue permits.
The move comes after lawmakers legally cleared gold, gold jewelry and accessories for import and export in January this year. An official notification has yet to be issued on the actual removal from the list.
Legal gold exports could draw more foreign currency into the country and help stabilise the exchange rate of the domestic currency, the kyat, which stands now at a record high of 1,445 kyat per US dollar, based on the central bank’s reference rate. One of the reasons the kyat is depreciating is a shortage of US dollars in Myanmar.
It would also deter illegal trade at the borders, U Kyaw Win, chairman of the Myanmar Gold Entrepreneurs Association, told the paper. In the past, large amounts of the precious metal have been smuggled to Thailand, China and India, resulting in significant loss in tax revenues for the government.
The legalised gold trade could further attract foreign investors for mining and processing of gold.
According to Marcus Loke, senior consultant at Myanmar Gold Development Public Co, the commercial division of the Myanmar Gold Entrepreneurs Association, the country has untapped reserves of 1.3 billion tonnes of gold ore and so far just around five per cent of the total volume have been exploited.
Estimations say that Myanmar, as a start, could officially export as much as 20 metric tonnes of gold in 2019. However, a major hindrance remains the struggle for exporters to obtain quality certificates from assaying laboratories.
Myanmar`s Ministry of Commerce is in the process of officially removing a regulation that prevented traders to export gold for more than five decades, according to a report in The Myanmar Times. The ministry will remove the metal from the restricted exports list and also open a service center near in Yangon to handle the legal trading of gold, advise traders and issue permits. The move comes after lawmakers legally cleared gold, gold jewelry and accessories for import and export in January this year. An official notification has yet to be issued on the actual removal from the list. Legal...
Myanmar`s Ministry of Commerce is in the process of officially removing a regulation that prevented traders to export gold for more than five decades, according to a report in The Myanmar Times. The ministry will remove the metal from the restricted exports list and also open a service center near in Yangon to handle the legal trading of gold, advise traders and issue permits.
The move comes after lawmakers legally cleared gold, gold jewelry and accessories for import and export in January this year. An official notification has yet to be issued on the actual removal from the list.
Legal gold exports could draw more foreign currency into the country and help stabilise the exchange rate of the domestic currency, the kyat, which stands now at a record high of 1,445 kyat per US dollar, based on the central bank’s reference rate. One of the reasons the kyat is depreciating is a shortage of US dollars in Myanmar.
It would also deter illegal trade at the borders, U Kyaw Win, chairman of the Myanmar Gold Entrepreneurs Association, told the paper. In the past, large amounts of the precious metal have been smuggled to Thailand, China and India, resulting in significant loss in tax revenues for the government.
The legalised gold trade could further attract foreign investors for mining and processing of gold.
According to Marcus Loke, senior consultant at Myanmar Gold Development Public Co, the commercial division of the Myanmar Gold Entrepreneurs Association, the country has untapped reserves of 1.3 billion tonnes of gold ore and so far just around five per cent of the total volume have been exploited.
Estimations say that Myanmar, as a start, could officially export as much as 20 metric tonnes of gold in 2019. However, a major hindrance remains the struggle for exporters to obtain quality certificates from assaying laboratories.
