A severe shortage of banknotes in some resistance controlled Chin State townships is disrupting trade and essential daily activities, including healthcare, religious practices, and social services.
The Chin State townships of Kanpetlet, Mindat, Matupi, and Paletwa have all been affected as fighting has interrupted banking services. Residents of those townships are struggling to withdraw cash from mobile payment apps like Wave and KPay.
Customers' problems have been compounded by disruptions of internet and mobile phone services which restricts their access to mobile payment apps even more. Even when these services are accessible, locals report that they are unable to withdraw as much cash as they need.
Explaining this a Paletwa Township Resident said: “Withdrawing money sent from both local and international sources through payment apps as cash is extremely difficult. Some affluent individuals with cash on hand offer exchanges for digital money but at steep rates, charging up to 10,000 MMK for every 100,000 MMK. Even so, they can't provide this service every day and occasionally run out of banknotes themselves.”
But, he pointed out that even if locals agree to pay these higher tariffs for cash it is often still not available.
He said to Chin World: “The biggest issue is the growing scarcity of banknotes in the region making it hard for people to shop or manage daily needs.”
There has been a shortage of banknotes in Paletwa Township since the Arakan Army (AA) captured it on 14 January 2024.
Kanpetlet Township, which came under the control of the Chin Brotherhood (CB) alliance and its allies on 23 December 2024 is also facing a banknote shortage but its proximity to Magway Region has meant that the situation has not been as severe as in other southern Chin State townships.
A Kanpetlet resident said: “In Kanpetlet, withdrawing money from mobile payment apps or using these apps for transfers generally comes with a fee of around 3,000 MMK for every 100,000 MMK. Thanks to its proximity to Saw Town in Magway Region, the banknote shortage in Kanpetlet is less severe. Although the exchange rate is higher than normal, residents can still withdraw as much cash as needed.”
