Mizzima

The gold trading community says the Military Council has arrested some gold traders and money changers in Yangon and Mandalay after the gold price and US dollar exchange rate rose sharply.

Sources in the community said that at least 10 gold traders were arrested and the gold traders from seven gold shops were taken for questioning by the Military Council.

The Military Council reportedly questioned some gold traders in Mandalay for their alleged illegal trading of gold and the US dollar and they could face action under the anti-money laundering law and foreign exchange management law.

The Military Council started arresting these gold traders and gold smelters since 14 June with allegations of conducting illegal import and export of gold and illegal money changing business.

Despite the arrests and questioning of gold traders and gold shop owners in Yangon and Mandalay the prices of gold and the US dollar continue to rise. 

On 16 June the price of 24 Karat gold was over 3,125,000 Kyat per tical (approx. 16.3 gm) in the open market and 22 Karat gold is over 2,929,000 Kyat per tical.

The official reference price set by the Yangon Gold Entrepreneur Association (YGEA) is 2,310,000 Kyats per tical for 24 Karat gold and over 2,166,000 Kyats per tical for 22 Karat gold.

High demand and shortage of US dollars in the market pushed the exchange rate up to between 2,900 Kyat and over 3,000 Kyat against the dollar.

The high dollar exchange rate reportedly caused the high price of gold in the market.