Sittwe residents worry about circulation of counterfeit banknotes

By DMG 27 Jun 2022

DMG Newsroom
26 June 2022, Sittwe 

Residents in the Arakan State capital Sittwe have voiced concern over the potential proliferation of counterfeit banknotes after the recent discovery of K350,000 in bogus bills. 

An Ayeyarwady Bank branch in Sittwe seized 35 counterfeit banknotes of the K10,000 denomination variety from a depositor on June 21.  

The depositor is the owner of a grocery store and was taken to a police station in Sittwe for questioning, according to the Arakan State military council’s Facebook page. 

Locals say they are worried about the spread of counterfeit currency following the incident. 

Sittwe resident U Soe Naing noted that banknotes are an important part of everyday economic life, and that the emergence of counterfeit money was a threat to confidence in the monetary system. 

“Money is the second god of every human being. If counterfeit money comes into your hands, it is as if you are losing your possessions. So when you have mistrust and anxiety about money, it threatens your life,” he told DMG, adding that he was also concerned people could be prosecuted even if they unknowingly possess counterfeit money. 

Section 102 of the 2013 Central Bank of Myanmar Law carries a sentence of 10 to 20 years in prison for counterfeiting currency. Section 101 prescribes three years’ imprisonment, a fine or both for using counterfeit money. 

Urbanites are typically more adept at distinguishing between real and counterfeit banknotes than residents of rural areas, who are not as familiar with the problem and how to spot fake bills, according to businesspeople. 

Ko Nyi Nyi, an odd-job worker, said it was difficult for ordinary folk to identify counterfeit banknotes. 

“I am an odd-job worker and earn around K10,000 per day working as a mason. If our wages were paid in counterfeit money, we would be in big trouble,” he said.

 An unnamed border merchant told DMG that the counterfeit notes may have been spread via the border with Bangladesh or through illegal trade. 

U Aung Aung, a businessman in Sittwe, said people may suffer hardship due to counterfeit money, adding that effective action should be taken against those who distribute fake currency. 

Bogus money is widely sold on social networking sites such as Facebook. In April, DMG reported that a growing number of advertisements had been posted on social media offering K1 million worth of counterfeit bills for K100,000 of real money.