Ever-increasing military expenses amid the escalating nationwide armed revolt and hard-currency shortages are forcing the military regime to sell more jade at the ongoing gem fair in Naypyitaw.
Junta boss Min Aung Hlaing opened the Myanmar Gems Emporium at Mani Yadanar Jade Hall in the administrative capital on Monday. The fair will run until Nov. 27 with 4,800 lots of jade, 280 lots of pearls and 160 gem lots up for sale through an open tender system in U.S. dollars, euros, yuan, baht, kyats and other currencies accepted by the Central Bank of Myanmar, junta media reported.
The reports claimed over 4,500 local and foreign merchants visited the fair on the opening day. The civilian National Unity Government has warned domestic businesses not to participate and said it would blacklist any trader who does because sales bankroll the regime.
At the 2021 fair just after the coup, the regime sold 1,955 jade lots, rising to 2,150 lots in 2022 and 4,025 last year.
One jade merchant in Mandalay said: “The regime is selling more jade lots this year than last year. Previously, it only sold them only for euros, U.S. dollars, yuan and baht, but this year it’s also accepting Singapore dollars, Russian rubles and Indian rupees, which indicates that the regime badly needs foreign currency.”
At the first expo after the coup, gemstones were sold only for kyats, but at the 2022 and 2023 fairs floor prices were set in U.S. dollars, with foreign buyers purchasing lots using U.S. dollars, euros, yuan, and Thai baht, while local buyers used kyats at the official exchange rate.
“Ordinary traders have not been able to attend the gem exhibition for a long time,” the Mandalay merchant said. “China is the major buyer of jade, but the border is closed and Chinese merchants are no longer coming, so the market has been disrupted.”
“Only merchants and companies with ties to the military regime attended the fair. Since the coup, gem exhibitions have not been as successful as they used to be,” the trader added.
The current exhibition offers 4,800 jade lots divided into groups A, B, and C. Lots in Groups A are only sold for hard currency, whereas foreign and local traders can buy Group B jade with either foreign or local currency, according to the regime.
Group C lots are restricted to local traders and must be paid for in kyats.
While the junta continued the annual gem fair after the coup, sales have declined as many businesses boycotted the event. Some gem merchants did not proceed with payment after making their bids and putting down deposits.
Myanmar has organized gem fairs since 1964 with the stated purpose of providing a source of foreign currency income and boosting the economy.
