Myanmar to float currency on Apr 1
Posted: 28 March 2012 1153 hrs
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File photo shows a man counting his money at a market in Myawadi province, Myanmar. (AFP/File - Pornchai Kittiwongsakul)
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YANGON: Myanmar will overhaul its complex exchange rate system to allow a managed flotation of its currency from April 1 as part of the new government's economic reforms, state media announced on Wednesday.
"The external value of the national currency, the Myanmar kyat, will from now on be determined by supply and demand conditions in the exchange market," according to an announcement in The New Light of Myanmar, adding that the central bank would manage the unit's movement.
Myanmar has a highly complex exchange rate regime, with official, semi-official and unofficial rates.
The official government rate -- which is widely ignored -- is fixed at around just six kyat per dollar, while in stark contrast the rate on the black market stands at about 800 per dollar.
The official rate will now be replaced with a market-determined rate as the first step to unifying the various exchange rates, while allowing room for the central bank to influence the currency's value, the New Light said.
It did not say at what rate the kyat would be floated.
Myanmar's new civilian government last year invited a team from the International Monetary Fund to visit the country, formerly known as Burma, to offer advice on reforming the forex market and unifying its multiple rates.
The unusual request by a regime that regards international institutions with suspicion was seen an indication of the gravity of the currency market disarray and a tentative sign it is warming to modern economic reforms.
File photo shows a main road near the Sule pagoda in downtown Yangon. (AFP/File - Christophe Archambault)
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WASHINGTON: Group of Eight foreign ministers raised the prospect Thursday of easing international sanctions on Myanmar after a series of reformist moves and landmark elections in the long-closed nation.
In announcing their decision, the ministers from the world powers said they welcomed "significant steps the government of Burma/Myanmar has taken toward democratic reform and national reconciliation."
"The ministers will consider the easing of sanctions to help this country embed reform and fully integrate into international and regional political and economic processes," they said in a final statement after talks in Washington.
Myanmar, which is also known as Burma, has surprised observers with a series of reformist moves in the past year after the end of nearly half a century of military rule, and historic by-elections on April 1 have been widely praised.
The elections gave democracy activist Aung San Suu Kyi her first seat in parliament after she spent who spent 15 of the past 22 years locked up by the junta.
In their statement, the G8 ministers urged Myanmar to "continue reform and reconciliation efforts, and undertake the unconditional release of all remaining prisoners of conscience and the removal of legal conditions placed on those already released."
It also called for "further steps to end all violence in ethnic minority areas, providing unfettered international humanitarian access to conflict zones and internally displaced persons, and severing of military ties with North Korea."
The ministers said they were ready to assist the country in "advancing reforms and stressed the need for the international community to support these efforts."
They praised the participation of opposition parties in the by-elections, as well as "progress toward preliminary ceasefires with armed ethnic groups, the release of a significant number of political prisoners and measures to eliminate forced labor."
The 27-nation European Union already lifted some restrictions against the regime this year and foreign ministers will decide the next steps when they meet on April 23.
Washington announced early this month that it would ease selected sanctions, but said measures would remain against those opposed to reform.
WORLD NEWSApril 13, 2012, 8:39 a.m. ET
Cameron Calls for Suspension of Myanmar Sanctions
By JAMES HOOKWAY and SHIBANI MAHTANI
British Prime Minister David Cameron on Friday called for a suspension on political and economic sanctions against Myanmar after a day of meetings with President Thein Sein and opposition leader Aung San Suu Kyi, putting pressure on the European Union to review its restrictions on political and trade ties with the former military state later in April after months of political reforms there.
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Britain's Prime Minister David Cameron chats with Nobel laureate and newly elected parliamentarian Aung San Suu Kyi at her residence in Yangon on Friday.
While other global figures have visited Myanmar in recent months, including U.S. Secretary of State Hillary Clinton, Mr. Cameron is the first Western leader to visit Myanmar since a nominally civilian government took power 12 months ago. After meeting with Mr. Thein Sein, a retired general, in the capital Naypyitaw and Ms. Suu Kyi in Yangon, Mr. Cameron told a news conference that "there are real prospects for change in Burma, and I think it is right for the rest of the world to respond to those changes."
Mr. Cameron said he plans to recommend to the European Union later this month that it suspend its sanctions against Myanmar, also known as Burma, when it meets to decide whether to maintain its long-standing trade curbs on the country. But he wouldn't go as far as recommending that European nations lift sanctions entirely, nor would he endorse lifting a ban on arms sales to Myanmar's military.
"Instead of lifting them entirely, we should suspend them so they are capable of being put back in place and it should cover everything, except the arms embargo," the British leader said, standing alongside Ms. Suu Kyi. "It will show to the regime that we respect and welcome the progress that has been made on political prisoners, on political freedom, but it is a suspension, not lifting, so if this progress is not irreversible then sanctions could be reimposed."
Ms. Suu Kyi, a former Nobel Peace Prize winner who spent years under house arrest and who exerts considerable moral influence in the west, endorsed Mr. Cameron's position. She said suspending sanctions is the right way to respond to the democratic reforms under way in Myanmar, and said she believed that Mr. Thein Sein is genuine about reform. Moreover, suspending rather than lifting sanctions, she said, "makes it clear to opponents of reform that if they oppose reform, sanctions could come back."
Mr. Cameron's stance makes is almost certain that the European Union will suspend at least some of its sanctions on Myanmar when its review begins on April 23. Britain has long been more cautious than many other European nations on easing sanctions, and Mr. Cameron's new tack means there are few other opponents to easing trade curbs.
Political analysts and diplomats say that quiet, soft-spoken Mr. Thein Sein needs the U.S. and European Union to drop their long-standing sanctions on the country in order to maintain its shift toward democracy. Some foreign officials who have met with Mr. Thein Sein and his government warn that there remain hard-liners in the military who might slow the rate of change in Myanmar unless the new government can show it can deliver tangible economic rewards from the reform process.
Mr. Cameron said his proposal was designed to strengthen Mr. Thein Sein's hand, while also warning skeptics in the armed forces again that sanctions could be quickly reinstated if they obstruct reform.
But ensuring that Myanmar's reform process continues in such as way as to persuade the EU—and the U.S.—to permanently lift their sanctions on the country will likely be difficult. Analysts say there are many political prisoners still in detention, and finding a solution to Myanmar's myriad ethnic conflicts will be particularly testing. The country has been plagued by ethnic conflicts in its northern and eastern states since independence in 1948, and there is considerable bad blood between the various insurgent groups and the armed forces.
In a 676-page report issued late this January, New York-based Human Rights Watch said Myanmar's military continues to violate international humanitarian law though extrajudicial killings, torture and employing forced labor in the Kachin, Shan and Karen States. The report alleged that army units in the Karen State specifically force rebel captives to work in live combat zones, using them as human shields to clear land mines or to deter attacks.
The political leader of the one of the largest ethnic insurgent groups, the Karen National Union, says the rest of the world should wait for more political reforms and the implementation of a lasting national cease-fire before lifting trade curbs.
"The international community should not rush too fast," the KNU's general secretary, Zipporah Sein, said in a telephone interview with The Wall Street Journal on Thursday, before Mr. Cameron's visit. "They should wait a little bit."
Last week, the possibility of an end to a long-running conflict between the Karen group and the national government came into view as insurgent leaders met separately with Mr. Thein Sein and Ms. Suu Kyi, the highest level talks since a tentative cease-fire agreement was made in January this year.
Ms. Zipporah Sein said the agreement was just "the first step" and that the government still needs to go further to show their commitment to a lasting peace process that could help drive economic growth.
"The President (Thein Sein) believes there should be peace and the country should be developed," she said. "Unless there is a cease-fire, they know the country won't get developed—but they don't know what the ethnic people struggle for."
Myanmar to be set free from EU sanctions: analysts
Posted: 15 April 2012 1159 hrs
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Myanmar members of parliament outside the parliament building in the capital Naypyidaw (AFP/File - Daniel Rook)
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BANGKOK: Myanmar is likely to shake off tough EU sanctions this month, analysts said, after a dramatic change of policy from Britain and opposition leader Aung San Suu Kyi in the wake of sweeping reforms.
Western nations eager to reward changes that culminated in Suu Kyi's election to parliament in April 1 by-elections, have made some reciprocal gestures to encourage Myanmar's government.
But the call from British Prime Minister David Cameron for all European Union measures to be suspended is the strongest signal yet that sanctions may be halted -- although not scrapped completely as the international community looks to maintain leverage in the still army-dominated country.
Experts said the suspension is likely to be enacted by EU foreign ministers on April 23, potentially opening up what many investors see as the next big frontier market to European firms.
"Given this pre-emptive move by one of Europe's most hardline countries, the foreign ministers' decision looks like a fait accompli," said Jim Della-Giacoma of the International Crisis Group (ICG), describing the proposal as "a de facto dropping of sanctions".
Myanmar President Thein Sein has surprised observers with a series of reforms since taking office last year, including accepting Suu Kyi and her party back into the mainstream and freeing hundreds of political prisoners.
But Western sanctions have largely been left intact as the international community balanced fears over the sustainability of the changes and a desire to bolster regime reformers who may face pressure from those wary of change.
Suu Kyi's endorsement of the suspension -- which does not include an arms embargo -- is also crucial, said Gareth Price, senior research fellow in the Asia Programme at Chatham House. "That has always been a big determinant of the UK and pretty much the wider EU position."
He said the proposal was a "sensible middle path" between countries wanting a wholesale removal of sanctions and those striking a more cautious note.
"Everyone wants the reform process to continue and the question is how best to do that," he explained.
The 27-nation European Union has already lifted a travel ban on 87 Myanmar officials, including Thein Sein, in February but kept an assets freeze against them.
Its decision later this month is likely to encompass other EU sanctions, including a ban on gems and an assets freeze on nearly 500 people and 900 entities.
But it is still unclear how far it would be echoed in Washington, which said it would ease restrictions on investment to Myanmar and appoint an ambassador this month as a reward for reforms.
The US has indicated further loosening would be tied to the release of remaining political prisoners and a solution to long-running conflicts with ethnic rebel groups.
ICG's Della-Giacoma said while the EU and Australian sanctions could be easily lifted, those in the US were "embedded in law" and would be difficult to shift with the tight schedule and political demands of an election year.
"We should expect more incremental moves from the US with further reforms in Myanmar being matched, but not anything too dramatic," he said.
Adding momentum to the political decisions is surging investor interest in Myanmar, with its abundant natural resources, strategic position in Asia and soaring tourism sector.
The Asian Development Bank described it as a "goldmine", predicting accelerating growth, despite an array of challenges.
Myanmar is actively wooing foreign business, with new measures including a managed flotation of its currency, tax holidays for investors and plans to open its first official stock exchange in 2015.
"The Myanmar economy has tremendous opportunities in many sectors," said Rajiv Biswas, Asia-Pacific chief economist at IHS Global Insight, pointing to oil and gas, tourism and the underdeveloped financial system.
He said the EU and US were likely to increase their economic engagement with Myanmar through providing new development assistance, meaning the country "could become the next gold rush opportunity" for firms providing everything from construction to healthcare.
But Western firms are likely to remain cautious about the country as it grapples to resuscitate its moribund economy, crippled by mismanagement and corruption during nearly half a century of military dictatorship.
"It's a country without a functioning rule of law. The idea that all these Western companies are going to pour in billions strikes me as unlikely, until there are some sort of changes in legal protections," Price told AFP.
Australia to lift some Myanmar sanctions
Posted: 16 April 2012 0857 hrs
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Australia foreign minister Bob Carr (AFP PHOTO / Greg WOOD)
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SYDNEY: Foreign Minister Bob Carr on Monday said Australia will lift sanctions against Myanmar's president and more than 200 others who are currently under travel and financial bans.
However, about 130 names will remain on the restricted list, including senior members of the military and others suspected of human rights abuses, he told the Australian Broadcasting Corporation.
"We're easing sanctions after talking to Aung San Suu Kyi and others in the opposition, after talking to the government itself, (and) after talking to other nations," Carr said.
Speaking from London where he was to meet British Foreign Secretary William Hague, Carr said it meant the number of people in the Myanmar government subject to restrictions would be reduced from 392 to about 130.
"That removes many of the civilians from the list, and that includes President Thein Sein and government ministers.
"But senior serving military officers and people of human rights interest will stay subject to those Australian sanctions."
Myanmar, also known as Burma, has surprised observers with a series of reforms in the past year after the end of nearly half a century of military rule, and historic by-elections this month have been widely praised.
The elections gave democracy activist Aung San Suu Kyi her first seat in parliament after spending 15 of the past 22 years locked up by the junta.
EU 'to suspend Burma sanctions for a year'
European Union diplomats have reportedly reached a preliminary agreement to suspend sanctions against Burma for a year, opening up trade and investment with Western firms.
Prime Minister David Cameron and opposition leader Aung San Suu Kyi urged the suspension of all EU measures – though not the scrapping of the sanctions Photo: EPA
By Barney Henderson3:00PM BST 19 Apr 2012Comment
The move comes after 18 months in which Burma’s military junta, which has ruled the country with an iron fist for 50 years, have introduced a swathe of democratic reforms.
A final decision on whether sanctions will be suspended will be taken at a meeting of EU foreign ministers in Luxembourg on Monday.
“There is now agreement in principle” to “a suspension of all sanctions, except for the arms embargo,” a diplomat close to the talks, who asked not to be identified, told the AFP news agency.
Under the plan, travel bans and asset freezes on regime officials would be lifted. Foreign investment in the country’s rich oil and gas resources as well as in its traditional logging industry would be permitted.
Development and aid money would be allowed into a country that struggles with grinding poverty.
There have been recent splits within the EU over when to remove sanctions on Burma following the actions of the military-backed government President Thein Sein in moving towards democracy since November 2010.
Germany has urged a swift end to sanctions but Britain has previously been keen to maintain leverage in the still army-dominated country.
However, in a press conference last week, Prime Minister David Cameron and opposition leader Aung San Suu Kyi urged the suspension of all EU measures – though not the scrapping of the sanctions.
Ms Suu Kyi’s endorsement of the suspension was seen as crucial.
The 12-month suspension period “gives us time to assess the sustainability of reform”, a diplomat said. The ministers are expected to also agree to include the possibility of reviewing the decision in six months.
Western nations eager to reward sweeping reforms that culminated in Ms Suu Kyi’s election to parliament in April 1 by-elections, have already made some reciprocal gestures to encourage Burma’s government.
Once in place, the suspension opens up what many investors see as the next big frontier to European firms.
27-09-2012, 01:12 PM (This post was last modified: 27-09-2012, 01:15 PM by ValueBeliever.)
If New Toyo management were to just announced to the market that once the Sanction is lifted, NT would use the investment from SHA into Myanmar paper industry for all kinds of paper product to be exported to the rest of the world, which we know Myanmar is full of natural green resources.
Anyway I just tabled here - sorry this is not a speculation forum but out of interest to demonstrate what a big difference a Myanmar story is like betw UPP, Yoma and NT (without a speculative twist yet).
Before and after the crisis you would still sleep with easy on NT. You would still sleep with easy knowing NT has lots of cash. Would you be able to sleep with peace on YOMA?
But then again, a little risk would not hurt, indeed base on YOMA the gain is very steady also? - see attached.
27-09-2012, 03:29 PM (This post was last modified: 27-09-2012, 04:35 PM by Underdogger.)
Why would New Toyo have an advantage over other companies with more cash reserve than New Toyo?
Thought New Toyo had previously lost money on its "tissue paper" business and divested it...
New Toyo divested its non-carbon paper business units in 2002. Why would it want to go back again? To save face?
(27-09-2012, 01:12 PM)ValueBeliever Wrote: If New Toyo management were to just announced to the market that once the Sanction is lifted, NT would use the investment from SHA into Myanmar paper industry for all kinds of paper product to be exported to the rest of the world, which we know Myanmar is full of natural green resources.
Anyway I just tabled here - sorry this is not a speculation forum but out of interest to demonstrate what a big difference a Myanmar story is like betw UPP, Yoma and NT (without a speculative twist yet).
Before and after the crisis you would still sleep with easy on NT. You would still sleep with easy knowing NT has lots of cash. Would you be able to sleep with peace on YOMA?
But then again, a little risk would not hurt, indeed base on YOMA the gain is very steady also? - see attached.
those who bought New Toyo at around 20 to 25 cents - better run off now with gain before company squanders all the dividends from SAH away...??
(27-09-2012, 03:29 PM)Underdogger Wrote: Why would New Toyo have an advantage over other companies with more cash reserve than New Toyo?
Thought New Toyo had previously lost money on its "tissue paper" business and divested it...
New Toyo divested its non-carbon paper business units in 2002. Why would it want to go back again? To save face?
(27-09-2012, 01:12 PM)ValueBeliever Wrote: If New Toyo management were to just announced to the market that once the Sanction is lifted, NT would use the investment from SHA into Myanmar paper industry for all kinds of paper product to be exported to the rest of the world, which we know Myanmar is full of natural green resources.
Anyway I just tabled here - sorry this is not a speculation forum but out of interest to demonstrate what a big difference a Myanmar story is like betw UPP, Yoma and NT (without a speculative twist yet).
Before and after the crisis you would still sleep with easy on NT. You would still sleep with easy knowing NT has lots of cash. Would you be able to sleep with peace on YOMA?
But then again, a little risk would not hurt, indeed base on YOMA the gain is very steady also? - see attached.
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Time to adjust back after the hype on Myanmar with acquisition of central Yangon site delayed? Historical PE of more than 60, PB of more than 3, and with ROA/ROE of approx 4%. Investor are forward looking on its value.
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