Myanmar opened a lucrative auction of gems on Wednesday despite tightening Western sanctions and calls for a boycott from top international jewellers following the junta's deadly crackdown on protests.
The military government hopes to sell some 5,500 lots of jade, gems and pearls, worth nearly 200 million euros (about 300 million dollars), during the 13-day auction, an official of state-run Myanmar Gems Enterprise (MGE) told AFP.
"The quality of our stones is the best," said the official, who declined to be named, adding that more than 2,000 foreign merchants, mainly from neighbouring China and Thailand, were expected to attend the fifth sale this year.
The poverty-stricken country is the source of up to 90 percent of the world's rubies, and each auction of precious stones rakes in more than 100 million dollars, making it a key source of revenue for the military regime. Myanmar used to hold gem auctions twice a year but has been holding them with increasing frequency in a bid to raise much-needed foreign currency amid tightening sanctions against the junta. It held four auctions in 2006.
"The mere fact that this is the fifth auction shows the junta is really desperate for money," said Aung Naing Oo, a Myanmar analyst based in Thailand. "The gem auction is one of the vital means for the junta to earn hard currency, followed by natural gas and teak. As economic sanctions remain in place, the junta relies on gem auctions to earn money," the analyst said. Debbie Stothard, an activist from the Alternative ASEAN Network on Myanmar, a regional rights lobby, said the regime was under severe economic pressure due to sanctions.