Irrawaddy-Nov 27
Rakhine State’s banking system has collapsed amid power outages, fuel shortages, and internet disruptions during a year-long conflict that has seen the military regime suffer significant loss of territory to the Arakan Army (AA).
Residents report that the local economy has shrunk to the point where people now make transactions only for survival. Since fighting resumed on November 13, 2023, banks in towns such as Sittwe, Maungdaw, Thandwe, and Minbya have ceased operations. In mid-November, the last remaining private banks shut down in Kyaukphyu, including KBZ, CB, AGD, Ayeyarwady, Yoma, and Global Treasure Banks. KBZ, a major private bank with 13 branches in Rakhine, hung on in Kyaukphyu, Ngapali, Thandwe and Taungup until June. All private banks have ceased operations in Rakhine’s capital, Sittwe. The junta-controlled Myanmar Economic Bank (MEB) shut down there in March. Although the MEB branch is still open in Kyaukphyu, it only operates to pay salaries for junta employees and no longer provides other banking services, according to locals.
With the closure of banks, locals now have to pay higher fees of 15 to 20 percent to withdraw and transfer money through mobile banking services like KBZ Pay, Wave Pay, and Mytel Pay. Locals are also reporting cash shortages after the regime blockaded roads and waterways to Rakhine. Meanwhile, migrant workers are facing difficulties remitting money back home to Rakhine, while business transactions have been disrupted and fraud has increased, according to merchants and residents. “There are clashes everywhere, and the closure of banks has made it hard to transfer money,” a business owner in Sittwe said. “People outside face pressure and challenges in transferring money here. It has become increasingly difficult to do business.” The banking collapse and shortages have sparked a booming black market, with smuggling becoming widespread, the expert added. Read more at:
