Myanmar: New 2015 Coin Commemorates End of Government's First Term

Started by Bimat, November 27, 2015, 07:22:31 AM

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Bimat

Commemorative coins in hluttaw

By Htoo Thant   |   Friday, 27 November 2015

Myanmar's Central Bank has been coining it, MPs have heard – but it's perfectly legal.

At the government's request, the bank issued 10,000 coins with a face value of K5000, but which went on sale at the Myanmar Gems Enterprise for K30,000 each, the Pyidaungsu Hluttaw heard on November 24. The coins were minted to mark the end of the government's first term.

The matter came up from the debate over the Pyidaungsu Hluttaw Public Accounts Committee report, which disclosed bank expenditures. The bank had demanded a supplementary grant of K59 billion, including K36.8 billion for its enterprises. These included issuing smaller-size currency notes, upgrading the security of the K5000 and K10,000 notes, and buying silver ingots to mint the memorial coins, the report said.

The use of public funds for that purpose required a review to determine whether the activity was lawful, said the committee.

"According to section 62 of the Myanmar Central Bank law, only the Central Bank shall have the right to issue currency notes and coins, and they shall be legal throughout the state. So it was deemed that the Central Bank could issue legal coins," the committee reported to parliament.

The sale of the coins was announced in state-owned media on November 4.

U Win Oo of the Pyidaungsu Hluttaw Finance and Planning Development Committee told The Myanmar Times that it can't be said that issuing the silver memorial coins was against the law, even though the coins were not intended to be used as everyday currency.

"They were sold for K30,000, so there was no loss," he said.

Translation by Thiri Min Htun

Source: MM Times
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.

eurocoin


Bimat

Thanks for the image! Any idea how the reverse design is related to the theme of the coin? ;)

A friend of mine is in Myanmar right now for commissioning work. I will just drop him a message if he can get one. The price tag might look as very expensive but it isn't if you convert it to Euro or even INR!

Aditya
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.

Bimat

Central Bank in spotlight over coins

By Swan Ye Htut | Friday, 04 December 2015

The ire of MPs over the 11.95 percent supplementary budget request from the outgoing government was directed yesterday toward the Central Bank.

While its request for K59.059 billion represents just 2.3 percent of the K2.464 trillion budget proposal, MPs said it was a prime example of government profligacy amid a stalling economy.

But Central Bank deputy governor U Soe Min defended the request, telling the Pyidaungsu Hluttaw yesterday that the additional funds sought by the Bank would help cope with inflation and ensure the smooth running of the country's financial system.

Pyithu Hluttaw representatives Daw Khin San Hlaing from Pale township, Sagaing Region; Daw Khin Mway Lwin from Myingyan township, Mandalay Region; and Daw Tin Nwe Oo from North Dagon township, Yangon Region, zeroed in on the matter of the 10,000 commemorative K5000 coins that the bank issued for sale last month.

"We've found that the Central Bank has requested a supplementary grant of K59 billion and also minted coins with a face value of K5000 to commemorate the government's first five-year term. The Pyithu Hluttaw's Public Accounts Joint Committee has raised the question of whether this was lawful," said Daw Khin Mway Lwin. "Was the issue of these coins really necessary when so much money is being wasted and state-owned enterprises are in trouble?"

She also asked how many had been sold, and if it was true that the coins were selling for K30,000 each.

Daw Khin San Hlaing asked if the issuance of the coins, which were not part of the national currency, was legal under the Public Funds Act. "It does not seem to be good practice that the bank should request a supplementary budget after casting 10,000 coins," she said.

U Soe Min said new banknotes had to be printed after the government raised wages, and printing costs had also risen. He said the cost of printing bank notes and casting the coins was K36.802 billion.

"Wage increases and a broad budget deficit were driving more currency into the economy, a factor that leads to inflation. Handling inflation is the responsibility of the Central Bank. The bank also carried out a [treasury bond] auction to collect inflated currency as a way to handle inflation. We needed more cash to pay off interest on the [bonds], so requested an allotment of K16 billion," he said.

He added that part of the additional budget request was to cover the cost of circulating the coins, which were to be priced in accordance with actual production costs. Money earned from selling the coins would go into the state's coffers, he said.

U Soe Min said minting such commemorative coins was a common practice among international central banks, and its issuance was legal under the relevant legislation. The allocation requested by the bank would flow into government departments, he said.

North Dagon MP Daw Tin Nwe Oo warned of the risk of inflation, recalling that K10 from 50 years ago was now worth K10,000. The K5000 note had been introduced in 2009, and the K10,000 note since 2012.

She said, "A new coin can be issued only with the permission of the Financial Commission.

"But even though we already have a K5000 note, the bank issued a K5000 coin without seeking permission. Why did the Bank issue this K5000 coin? Money is a medium of exchange. If a K5000 bill were sold for K30,000, where does the extra K25,000 come from? An increase in the circulation of money will bring inflation, with consequences for internal stability."

Translation by Zar Zar Soe and Kyawt Darli Lin

Source: MM Times
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.

Figleaf

Confusion reigns. If the 10 000 commemorative coins are sold abroad or kept as keepsakes, they do not add to the money supply and inflation. When they are sold to Burmese who do not spend them they diminish the money supply, but the amount is too small to affect inflation. If there is high inflation, banknote printing cost will increase, but in real terms, cost may go up, down or be stable. If K5 000 coins are selling for K30 000 they will not enter into circulation.

The real question is who sold the coins and what happened to the profit? Why didn't the Central Bank profit, while it apparently bore the cost? Which "government departments" has the profit flowed into and can't their budget be cut for the amount of the profit?

Still, this is great progress for Burma. A parliament that wants to know and asks questions. Active women in parliament. May there be more developments in this direction.

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.