Severe Cash Shortage Causes Difficulties for Money Transfers and Withdrawals in Arakan

News ၊ October 11, 2026

Due to a cash shortage in Arakan, withdrawal fees have surged, and residents report facing significant difficulties in conducting money transfers and withdrawals.

Daw Tin Tin Moe, a money transfer and withdrawal operator, stated that as the armed conflict in Arakan persists, transportation challenges along with trade and business operations have caused cash to flow out of Arakan State, leading to a cash shortage and making it difficult to withdraw funds.

"Sometimes cash is completely unavailable. It has become so scarce that we even have to borrow from those around us," she said. "People in southern Arakha sometimes have to travel all the way to the north to get cash. When bridges were destroyed and travel was impossible, cash became completely scarce. It mainly depends on transportation links."

Withdrawers noted that the cash shortage has not only created obstacles in withdrawing money, but withdrawal fees have also risen higher than before, often requiring long waiting times.

"Previously, the fee for withdrawing 100,000 MMK was only around 4,000 to 5,000 MMK, but now the fee for 100,000 MMK is 7,000 MMK. If you withdraw a large amount, the fee is about 7 percent, which is really inconvenient," said Daw Phyo Phyo Aye, a person withdrawing money. "Also, the larger the cash amount, the longer you have to wait. Sometimes it takes about a week."

Operators noted that similar cash shortages occurred in Arakan last year, prompting the United League of Arakan (ULA) to intervene through various methods to keep transfer and withdrawal services running, and that current cash scarcity issues once again require resolution.

Source@ABN