Severe Cash Shortage Causes Difficulties for Money Withdrawals in Southern Arakan

News ၊ October 16, 2026

Residents and money transfer service providers report that a cash shortage has emerged in the towns of southern Arakan, causing difficulties in withdrawing money.

According to locals, as armed conflicts in Arakan State have persisted for a long time, transportation challenges, trading activities, and certain business operations have caused cash to flow out of Arakan State. This has resulted in a cash scarcity, creating obstacles for cash withdrawals.

"Sometimes cash is completely unavailable; it gets so scarce that we even have to borrow from others," said Daw Tin Tin Moe, a Kpay transfer and withdrawal operator. "People in southern Arakan have to go all the way to the northern part to get cash. When bridges were broken, it became completely scarce and was totally cut off for about a month and a half."

Money withdrawers note that due to the cash shortages, not only are withdrawals difficult, but withdrawal fees have also risen compared to before, and long waiting times are often required.

"Previously, the fee for 100,000 Kyats was only around 4,000 to 5,000 Kyats, but now it's about 7,000 Kyats for 100,000. If you go to withdraw a large amount, the fee is about 7 percent, which is really inconvenient," said Daw Phyo Phyo Aye, a customer coming to withdraw money from a transfer shop. "Also, the larger the cash amount, the longer you have to wait sometimes it takes about a week."

Locals also note that regarding cash usage within Arakha State at present, old banknotes are seeing reduced acceptance and usage in grocery stores and money transfer services.

In the middle of 2024, the ULA issued local administrative orders twice instructing people to use old and worn banknotes, warning of action if they were refused. Currently, however, the usage of old banknotes among the public has decreased.

Money transfer operators mention that although similar cash shortages occurred in Arakan last year and were managed by merchants and transfer operators through various methods to keep services running, the current cash scarcity problem once again requires resolution.

Source@ABN