By: Camp Correspondent
Rakhine State – June 2025 |
A worsening cash crisis is disrupting daily life across parts of Rakhine State, particularly in areas under the control of the Arakan Army (AA). Locals report that old or slightly damaged banknotes are increasingly being rejected in shops, counterfeit currency is circulating more widely, and regular banking services remain shut down.
In towns like Buthidaung and Maungdaw, the crisis is especially severe. Many residents say they can no longer buy daily necessities because vendors are refusing to accept any note that isn’t in pristine condition.
“When we try to pay with old or slightly torn notes, shopkeepers reject them—even when the numbers are still clearly visible,” said a Rohingya woman from Buthidaung, speaking to Rohingya Khobor. “Where are we supposed to get new notes from? The banks are closed. Sometimes I leave the market with nothing.”
To survive, some residents have resorted to selling old or worn-out banknotes at a loss—for example, exchanging a 1,000-kyat note for just 700 kyats, effectively losing 30% of its value.
A Rohingya woman who trades these banknotes described the risks involved:
“When we exchange money, we often receive fake 10,000-kyat or 5,000-kyat notes. Some are torn in half. The banks don’t work, so we have no way to verify or replace them.”
Sources in Maungdaw have also reported the emergence of organized groups collecting damaged currency to resell at discounted rates—further exploiting the financial desperation on the ground.
With the collapse of formal banking systems and a surge in counterfeit money, basic transactions have become increasingly difficult. For Rohingya families already burdened by armed conflict, displacement, and lack of essential services, this financial uncertainty adds yet another layer of suffering.
The ongoing conflict between the Arakan Army and Myanmar’s military continues to trap civilians in a cycle of insecurity—where even buying food has now become a daily struggle.
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