Myanmar's border trade surges 37.83 pct year-on-year in Q1 of 2023-24 FY

Yangon [Myanmar], July 30: Myanmar's border trade surged 37.83 percent year-on-year to over 2.75 billion U.S. dollars during the first quarter of the 2023-24 fiscal year, according to the Ministry of Commerce.
A major factor that contributed to the trade increase was relaxation of border trade restrictions in the post-COVID-19 period, exporters said.
Between April 1 and June 30 this year, the Southeast Asian country exported goods worth over 1.78 billion dollars through border gates, while it imported goods worth over 970.96 million dollars, showed the ministry's figures.
"The border trade volume surged year-on-year during the three months of this fiscal year, but it still hasn't reached pre-COVID-19 levels," U Win Htay, vice-chair of the Myanmar Sugar and Sugarcane Related Products Association, told Xinhua on Friday.
The challenges that exporters currently faced in border trade to reach pre-pandemic levels included financial rules and charges collected by various (armed) organizations along the routes, which made the prices of exported goods higher in foreign markets, the exporters said.
To facilitate exporters, the Central Bank of Myanmar eased its foreign currency rules in July, allowing them to convert just 50 percent of their earnings. Exporters were previously required to convert 65 percent of their export earnings into local currency kyats with the central bank's reference exchange rate.
The central bank's reference exchange rate stood at 2,100 kyats per U.S. dollar, while the exchange rate at local currency exchange counters stood at around 3,000 kyats per dollar on Saturday.
The central bank's action has led to a slight improvement in the export sector, but not a significant one, exporters said.
"If the routes are clear, the border trade volume will increase, as exporting through land borders is faster compared to sea routes," U Win Htay said.
U Min Min, permanent secretary of the Ministry of Commerce, told Xinhua, "We are working together with exporters and importers from the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) and other organizations to facilitate border trade."
The commerce ministry was carrying out various activities to promote border trade in the post-COVID-19 period, he said, adding that one of them was the fourth Myanmar (Lashio)-China (Lincang) border trade fair held in Nay Pyi Taw in May.
According to the commerce ministry, China is one of Myanmar's major trading partners, and border trade plays a major role in the trading between Myanmar and China.
Despite the year-on-year growth in border trade, the country's maritime trade faced a decline of 10.18 percent year-on-year to over 5.76 billion dollars during the three months of this fiscal year, showed the ministry's figures.
The Southeast Asian country conducts border trade with China, Thailand, Bangladesh and India. The country usually does most of its foreign trade through sea routes as it has a long coastline.
Myanmar exports agricultural products, animal products, fisheries, minerals and forest products, manufactured goods and others, while it imports capital goods, intermediate goods and consumer goods.
Source: Xinhua