Cash runs low at banks in Arakan State

By Admin 29 Nov 2023

DMG Newsroom
29 November 2023, Sittwe

Cash is reportedly running low at several banks in Arakan State due to the junta’s ongoing travel restrictions.

The regime has blockaded roads and waterways since fighting with the Arakan Army (AA) broke out on November 13, and cash is dwindling at banks, forcing many to impose restrictions on cash withdrawals, bank staff told DMG.

“Cash is running low at banks. It is not convenient to take cash from Sittwe due to road blockades. If the blockade continues for a long time, banks will be forced to shut down,” said a source familiar with the matter.

The cash problems are due partly to many people seeking to withdraw their money due to the uncertainties inherent in the fighting, and soaring food prices.

The state-owned Myanma Economic Bank is among those imposing restrictions on cash withdrawals, and it keeps the majority of its cash at junta bases.

A money transfer agent in Lay Nyin Taung Village, Mrauk-U Township, said the KBZ Bank branch in Mrauk-U town limits cash withdrawals to 200,000 kyats every three days.

“A few days, the bank gave 500,000 kyats. But now, we can only withdraw 200,000 kyats from our bank accounts every three days. It is not convenient for us,” she said.

In Mrauk-U alone, KBZ Bank, Global Treasure Bank, and Myanma Economic Bank have imposed limits on cash withdrawals.

Banks in Sittwe are also limiting cash withdrawals depending on account balances and types of accounts, said a member of a local charity.

“Cash withdrawals are limited to 2 million kyats for individual accounts, and around 10 million kyats for bank accounts of organisations in Sittwe. Smaller amounts are allowed on days when large numbers of people withdraw their money,” he said.

In Kyaukphyu town, KBZ Bank and Global Treasure Bank have limited cash withdrawals to 1 million kyats per week for individuals. In Manaung town, KBZ Bank limits cash withdrawals to 500,000 kyats per week for individuals.

Banks in Pauktaw, Ponnagyun, Myebon and Minbya towns have closed due to regional instability, and local people report struggling to transfer and receive money. The flow of commodities has also been severely disrupted by the junta’s travel restrictions.