Arakan News Agency | Exclusive
In areas controlled by the Arakan Army (AA), the acceptance of old and torn banknotes has significantly decreased, while counterfeit money is also circulating, leading to a cash shortage, according to residents.
“When we buy something from shops and try to pay with old or slightly torn banknotes, the shop owners refuse to accept them although the numbers aren’t damaged. Where are we supposed to get new banknotes from? The banks aren’t operating. Sometimes, I can’t buy anything at the market and have to return home empty-handed”, a woman from Buthidaung told Arakan News Agency.
People now lose 30% of the value of their old money banknotes as some people buy these old and torn banknotes at discounted rates. Residents sell a 1,000-kyat note for 700 kyats, the percentage is the same for all banknotes.
A woman who buys old banknotes stated that “when we exchange money, we face difficulties, for example, if we exchange 100,000 kyat, we lose over 10,000 kyat. Sometimes, I have counterfeit 10,000-kyat or 5,000-kyat notes mixed in. There are also torn notes where the two halves don’t match so banks don’t accept them”.
“The biggest losses come from counterfeit notes. Sometimes, at least four or five counterfeit 10,000-kyat or 5,000-kyat notes slip through”, she added.
According to sources, “In Maungdaw Township, there’s a large group that buys old and torn banknotes. In other townships, people who collect damaged money resell it to this group”.
Most of Arakan state is under the control of the Arakan Army, which launched a military campaign to seize control of the state in November 2023 against the Myanmar military. The Rohingya have been caught in the crossfire of the conflict, which has seen them subjected to violence, displacement, and forced conscription.
