In Arakan (Rakhine) State, areas under Arakha Army (AA) control are experiencing a severe cash shortage.
The United League of Arakan (ULA), political wing of AA, is urging the local community to accept and use even old and defective banknotes without rejection to help address the problem.
A vendor in Myebon reported that the public has heeded ULA's appeal and is using old and defective banknotes for transactions, resulting in fewer disputes between sellers and buyers.
“The Arakanese government (ULA) has directed that individuals who refuse old or defective banknotes be recorded. However, such incidents are rare, with considerations only made for severely damaged banknotes lacking identifiable numbers”, she said.
In Mrauk-U Township, individuals who reject old or defective banknotes can be reported to the ward administration office at any time, locals told Narinjara.
“Previously, people were quite picky about old and defective banknotes, causing some difficulties in transactions. Now, if anyone refuses such notes, people can easily file complaints, making transactions much smoother”, a Mrauk-U resident said.
Amid the ongoing struggle for independence, the issue of cash shortages in the liberated areas of Arakan State is worsening as banks are unable to operate regularly.
“Currently, encouraging the use of old and defective banknotes is just a temporary fix. Predicting the long-term outcome is challenging. With banks closed and employees unpaid, money circulation has halted, worsening the cash shortage. AA's authorities must prioritize resolving this issue”, the source also suggested.
Due to bank closures, new banknotes are no longer entering AA-controlled areas, increasing reliance on old and defective ones.
Similarly, in Kyauktaw and Pauktaw townships, ULA has encouraged the public to accept and use old and defective banknotes, and to report anyone who refuses to comply.
