Border News Agency
Kyauktaw, August 10.
People say that residents in the border townships controlled by the Arakan Army (AA) are using currency from neighboring countries.
In townships such as Maungdaw and Buthidaung, people are using Bangladeshi taka, while in Kyauktaw Township, they are using Indian rupees.
People say this increased use is because Myanmar kyat banknotes have become scarce, and the old, worn-out notes that are still in circulation are less accepted, leading people to use alternative currencies instead.
“Around the border areas of Bangladesh and India, people have stopped using Myanmar currency. Although some still use it, it’s rare. Since Myanmar kyat banknotes are scarce and old, worn-out notes are no longer accepted, using foreign currencies has become more convenient,” said a trader from Kyauktaw Township to Border News Agency.
It is said that 100 Bangladeshi taka is equivalent to 1,724 Myanmar kyats, and 100 Indian rupees is equivalent to 4,870 Myanmar kyats.
However, people say that foreign currencies from neighboring countries are not yet widely used throughout the towns; they are mainly used by traders, vendors, and some shops.
After the Arakan war began, the Myanmar junta cut off electricity, phone lines, and internet connections, and all banking systems came to a halt.
As a result, in the areas controlled by the Arakan Army, Myanmar kyat banknotes have become scarce, and online financial transactions have become difficult.
Because of the Myanmar kyat shortage, people had to use old, worn-out banknotes to solve the problem, but gradually, these damaged notes stopped being accepted.
As a result, buyers and sellers are facing difficulties in conducting transactions, and the people are urging the responsible authorities to resolve the issue.
“A lot of traders are very selective with money. Sometimes transactions don’t go smoothly. We try to give the best we can. Even if worn-out notes are said to be unusable, we still accept them. But when people say they don’t want to accept old, damaged notes, that’s frustrating. I just want them to be understood and accepted. Authorities have also advised markets to accept old, worn-out notes temporarily. They do accept them for a while, but then it becomes a big problem again. This won’t work. For things to work properly, the responsible authorities need to take effective action,” said a money transfer operator from Kyauktaw Township to Border News Agency.
People say that refusing to accept old, worn-out banknotes is having a significant impact on low-income groups and daily wage laborers.
Since their daily earnings of about 10,000 kyats sometimes include these damaged notes, they are unable to use them for shopping, causing difficulties in meeting their basic food and living needs.
“I work as a daily wage laborer. I sell fried snacks in town. Sometimes, if I’m not careful, I end up receiving worn-out banknotes, and when I try to use them again, they’re rejected. That causes difficulties for me,” said a female fried snack vendor from Kyauktaw Township to Border News Agency.
The Arakan Army controls the Arakan-Bangladesh and Arakan-India border areas, so there is trade flow with the neighboring countries. People say that traders, vendors, visitors, and people in poor health are using the foreign currencies from those countries.
People say that foreign currencies from neighboring countries fluctuate daily in value and are mainly used in border areas and towns. There are also many people providing currency exchange services in these regions.
