Arakan News Agency | Exclusive
Local residents in Arakan State, western Myanmar, reported that many traders have completely refused to accept banknotes in denominations of 50, 100, and 200 Myanmar kyats in areas under the control of the separatist Arakan Army in the state, while imposing conditions for accepting other denominations.
A resident of “Buthidaung” told the Arakan News Agency that traders have started returning these banknotes to them and refusing to accept them as payment for goods. Another person from the town of “Maungdaw” confirmed that traders refuse these denominations even if they are new and undamaged.
Residents confirmed that traders now only accept banknotes of a thousand Myanmar kyats. Meanwhile, others said some traders have started refusing to deal with 500-kyat and 1,000-kyat notes, while notes of 5,000 and 10,000 kyats are accepted.
The Arakan News Agency correspondent explained that traders accept 1,000-kyat notes from residents when purchasing goods worth 5,000 kyats, and do not accept 50, 200, or 500 kyat notes, adding that they accept 5,000 and 10,000 kyat notes when purchasing goods worth over 30,000 and do not accept thousand kyat notes then, pointing out that as the value of purchases increases, the value of the banknotes required from residents also increases.
A woman from “Maungdaw” also stated that prices in the state have risen significantly, and there are no longer goods worth fifty, a hundred, or two hundred Myanmar kyats, making these denominations no longer useful.
Arakan State has been suffering from a blockade of land and sea routes since fighting resumed between the Myanmar Army and the Arakan Army in November 2023, leading to a shortage of supplies and a sharp rise in prices. Since the Myanmar Army seized power in the country in 2021, the value of the kyat has gradually declined, resulting in a sharp increase in prices.
No new banknotes have been issued since the conflict in Arakan halted banking operations, so people use old notes, with 5,000 and 10,000-kyat denominations in use, while 500 and 1,000-kyat notes are rarely used. As a result, residents face many difficulties in purchasing their needs.
Residents of areas under the control of the Arakan Army in the state confirmed that they are struggling with the spread of counterfeit banknotes and a severe shortage of exchangeable banknotes, significantly affecting their purchasing power.
Most parts of Arakan State are under the control of the Arakan Army, which launched a military campaign against the Myanmar Army to control the state in November 2023. The Rohingya have been caught in the crossfire, facing violence, displacement, and forced recruitment from both sides.
