Burma said that it will hold a new gems auction in March, after its last sale in October pulled in $124 million of desperately needed foreign currency.

The official New Light of Myanmar newspaper gave no details in its announcement of the auction, which has become an increasingly important source of revenue for the junta.

Burma sold nearly 3,000 lots of jade, gems and pearls in October, when 1,800 foreign buyers showed up despite western sanctions on the regime over its dismal human rights record.

The auctions used to be held twice a year to curb the flow of precious stones into the country’s enormous black market, which economists believe is at least half the size of the formal economy.

Neighbouring China and Thailand have become the biggest customers at the sales, which were held four times in 2006.

Posted: 12|31|06 at 9:47 am. Filed under: Auction News.