“We are now trying to switch sales through illegal channels into legal ones. Control measures have been taken by the government, whether in the past or currently, but to legalise the sales, it would be better if gold-producing states and regions introduce procedures, regulations and laws to pay taxes. We are also trying our best to help in the process,” U Kyaw Win, chair of the Myanmar Gold Entrepreneurs Association, said.

Introducing regulations to make merchants trading gold through improper channels pay taxes is the best method, he said.

If illegal trading of gold cannot be prevented, it will impact the local gold market resulting in instability, said Yangon Chief Minister U Phyo Min Thein.

A draft directive procedures for importing and exporting gold, and gold jewellery was completed in 2018 but it hasn’t been submitted yet to the authorities for ratification, U Kyaw Win said.

“Our government is trying to regulate the gold market with rules, laws and procedures and we see the need for this is there. Unless we try, instability in the local gold market and speculation with hot money will persist and this will affect the economy,” U Phyo Min Thein said.

Myanmar has two main gold markets – Yangon market for lower Myanmar and Mandalay for upper Myanmar. China and India are the largest markets for gold produced in Myanmar.

The Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) will also assist in efforts to try and regularise the gold trade, said UMFCCI Chair U Zaw Min Win.

The government will do its part for the official gold market and the people involved in the trade, said U Phyo Min Thein.

“The illegal gold market flourishes in more opaque times, but right now, there is more transparency so the time is right to regularise the market,” said Myanmar Gold Entrepreneurs Association Secretary U Ohn Myaing.

The local price of gold, which had spiked up to K 1.3 million per tical (0.576 oz) of pure gold, is now only at K1.23 million. Because of rising world gold prices due to the US-China trade war, the price of local gold has remained high at around K1.2 million per tical.

The price spiked upwards last month over fears about the solvency of the country’s banks, but dropped once the fears faded.

The price of gold had been K1.05 million per tical in April and has risen by K200,000 in five months. – Translated

Source: https://www.mmtimes.com/news/regulation-gold-market-needed-trade-body.html