AA orders acceptance of worn banknotes for transactions

By Admin 24 Oct 2024

DMG Newsroom
24 October 2024, Sittwe

The Arakkha Army (AA) has issued a local order telling people to accept worn banknotes in transactions in the Arakan State townships it controls.

It warned that those who refuse to accept worn banknotes will be subjected to punishment. The AA issued the order as people have reportedly refused to accept old banknotes for daily transactions in its territory. 

Arakan State has been hit by acute cash shortages as the fighting has brought the banking system to a halt in most townships. The regime has imposed blockades since fighting began anew in November of last year, cutting off trade between Arakan State and other parts of the country. Banknotes are showing wear and tear as a result.

"Old banknotes have been used again and again, so they have become worn out. People must understand," said a Myebon resident.

The AA in July urged locals to accept old banknotes but issued the order recently amid the growing reports of refusals to accept old banknotes.

Mrauk-U resident Daw Hay Mon Hlaing welcomed the order. "I have damaged banknotes worth hundreds of thousands of kyats. I have held onto them as people refuse to accept them."

The non-acceptance of worn banknotes for transactions has created a market that is forcing people to sell their worn banknotes for lower denominations.

One woman from Pauktaw Township said: "In our area, some people go from village to village to buy old banknotes. For example, they pay 7,500 kyats for worn notes of 10,000 denominations."

The AA has seized 10 townships in Arakan State since it launched an offensive against the regime in November 2023.