Banks close and cash runs low in Rakhine State

Bank branches are closing across Rakhine State, including in townships under the control of the Arakha Army (AA), and residents are facing difficulties withdrawing money due to cash shortages, Myanmar Now has learned. The AA has seized the northern Rakhine State townships of Myebon, Minbya, Mrauk-U, Kyauktaw, Pauktaw, Ramree, Ponnagyun, Rathedaung, and Buthidaung, and continues to attack junta camps in the southern parts of the state, particularly in Ann and Thandwe, with further fighting expected in Kyaukphyu and the capital, Sittwe. Veteran Rakhine politician and former Myebon parliamentarian Pe Than said that there was no ban on banking operations in townships under the control of the ethnic armed organisation, which until recently had gone by the name Arakan Army. However, due to increased fighting between the AA and the military, the banks had closed their posts in several locations. “Bank operations stopped because of the difficulties they were facing, and their branches moved,” he explained. “When [the junta’s] troop strength was low, the soldiers kept the money, so cash did not remain in the banks. I heard that they took all the money from the banks when they were about to retreat from the area.” Myanmar Now was unable to independently verify the claim. A woman living in Kyauktaw Township claimed that all state-owned and private banks had closed in AA-controlled towns, and shops conducting popular mobile money transfer services, such as through Wave Money and KBZ Pay, charged up to eight percent for cash withdrawals. “The internet connection is not good, so sometimes we can't withdraw money,” she said. “It's hard to find cash, so we have to pay up to 8,000 kyat (US$3.80) to withdraw 100,000 kyat ($47.63). In the rural areas, the money transfer fee is over 10,000 kyat ($4.75).” She added that people have become selective about the condition of cash in circulation. “Since the banks are closed, even if the money is a little bit torn, we can't use those notes. We can't use a torn note even if it is glued.” An entrepreneur in the construction industry told Myanmar Now that in junta-controlled townships such as Sittwe, private banks had closed due to persistent power outages and internet connectivity issues; the only bank remaining in operation was reportedly the Myanma Economic Bank, but residents said that it mainly provides services for tenders, pensioners, and employees. “The banks are not working. There is no internet connection,” the entrepreneur said, adding that the high price of fuel makes it too expensive for many banks to run their own generators amid electricity cuts. People that urgently need cash and are able to travel are going to Yangon to withdraw money, he added. A woman in Taungup Township, which is under AA control, said that private banks still have a presence but had stopped giving out cash this month. “Money cannot be transferred from other regions to Rakhine. People can't transfer money because banks don't give out cash—we also can't withdraw the money we have saved in our bank accounts,” she said. “They said that their superior officials instructed them not to give out cash.” According to an announcement on the website of the private Kanbawza (KBZ) Bank, of its 13 branches in Rakhine State, all are closed except for those in Kyaukphyu, Ngapali, Thandwe, and Taungup. Myanmar Now called KBZ Bank’s branches in Rakhine State, as well as a representative of the junta-controlled Central Bank of Myanmar, but had not received a response at the time of reporting. The AA and the military held two days of talks in Kunming, Yunnan Province, China starting on May 14, but the negotiations reportedly broke down without resolution.

Banks close and cash runs low in Rakhine State

Residents of the conflict-torn state say they are facing difficulties withdrawing their funds due to cash shortages and bank branches shutting down

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