At the 18th-day meeting of the Second Pyidaungsu Hluttaw’s 13th regular session held yesterday Central Bank of Myanmar explained its reports to the Hluttaw and Hluttaw representatives discussed basic principle and concept, project works, budget of Fiscal Year 2019-2020 National Planning Bill and Union Budget Bill.
Central Bank of Myanmar report
First Central Bank of Myanmar (CBM) Deputy Governor U Soe Thein explained to the Hluttaw CBM financial policy implementation report and financial stability report for fiscal year 2016-2017 and 2017-2018.
CBM Deputy Governor said economic growth rate of Myanmar was 5.9 per cent and 6.8 per cent in FY 2016-2017 and FY 2017-2018 respectively. The reason for the increase in economic growth rate was due to the increase in agriculture sector production and export, increase in industry sector garment export and improvement in bank services.
Annual inflation rate and average inflation rate calculated on prices of 2012 as a base year was 7 per cent and 6.8 per cent for FY 2016-2017 and 5.4 per cent and 4 per cent for FY 2017-2018.
Annual inflation rate decreased significantly due to the exceptionally stable foreign exchange rate, decrease in CBM’s funding government’s budget deficit and stability of consumer product prices. Although the inflation rate decreased significantly it still remains high in comparison to neighboring ASEAN countries.
Money supply growth rate was targeted at 13 per cent for FY 2016-2017 and by end March of FY 2016-2017 it remains within the target at 9 per cent. It was targeted at 16 per cent for FY 2017-2018 and by end March of FY 2017-2018 this also remains within target at 6 per cent.
To have an appropriate level of currency in the economic system, deposit auction of banks’ current account surplus was started from 17 September 2012. A total of 23 auctions were conducted in FY 2016-2017 and an average of K 343 billion was reduced from the economic system in each auction. A total of 24 auctions were conducted in FY 2017-2018 and an average of K 307 billion was reduced from the economic system in each auction.
To smoothen and ease the flow of foreign currency in the market, CBM had conducted foreign currency auctions to avoid wide swings in foreign exchange rate. For the development of interbank trade of foreign currency Yangon foreign exchange market was established on 5 August 2013. During FY 2016-2017 the exchange rate of US dollar was at the lowest of K 1,159 and the highest of K 1,434. Daily exchange rate change was within one per cent. In FY 2017-2018 the exchange rate of US dollar was at the lowest of K 1,328 and highest of K 1,367. Daily exchange rate change was within 0.5 per cent.
Stability of the financial system was one of the main aims of CBM and regulations were set to control and manage financial institutions. As of end of FY 2016-2017 financial institutions made a total loan of K 39.69 billion. As of end of FY 2017-2018 financial institutions made a total loan of K 68.06 billion. Due to this there was financial stability during FY 2016-2017 and FY 2017-2018.
Financial policy implementation report and financial stability report for the six month period of April to September 2018 was submitted to President Office and approval was obtained. Arrangements were made to submit those reports to Union Government Office and once approval is obtained from Union Government Office, the reports will be submitted to Pyidaungsu Hluttaw said the CBM Deputy Governor.
After the explanation Pyidaungsu Hluttaw Speaker U T Khun Myat announced for Hluttaw representatives who want to discuss the reports to register their names.
FY 2019-2020 National Planning Bill and Union Budget Bill
Next 18 Hluttaw representatives discussed the basic principle and concept, project works, budget of Fiscal Year 2019-2020 National Planning Bill and Union Budget Bill.
The 18 Hluttaw representatives were U Khin Cho of Hlaingbwe constituency, U Khin Maung Thi of Loilem constituency, U Whey Tin of Chin State constituency 11, Tatmadaw Amyotha Hluttaw representative Lt-Col Myo Tun Aung, U Lwin Ko Latt of Thanlyin constituency, Dr Khin Soe Soe Kyi of Pyay constituency, U Than Soe ( a ) Than Soe (Economic) of Yangon Region constituency 4, U Soe Aung Naing of Kyonpyaw constituency, U Zaw Min Thein of Laymyethna constituency, U Aye Naing of Dagon Myothit (South) constituency, Tatmadaw Pyithu Hluttaw representative Maj Htin Lin Oo, U Myint Tun of Taze constituency, U Lal Min Htan of Chin State constituency 10, U Hla Tun Kyaw of Maungtaw constituency, Daw Khin San Hlaing of Pale constituency, U San Myint of Ayeyawady Region constituency 3, Dr Pyae Phyo of Ayeyawady Region constituency 7, and U Thet Naung of Lahe constituency.
The 19th-day meeting of the Second Pyidaungsu Hluttaw’s 13th regular session will be held on 2 September.— Aung Ye Thwin, Aye Aye Thant (Translated by Zaw Min)