Rakhine State-wide Private Bank Operations Suspended

Rakhine State-wide Private Bank Operations Suspended

Arakha Times (November 20, 2024)

It is reported that the operations of private banks have ceased across all 17 townships in Rakhine State.

Residents have reported that all private banks in the remaining Kyaukphyu Township, including KBZ, CB, AGD, Ayeyarwady, and Global Treasure Bank, have been closed since November 15.

In Sittwe, the capital of Rakhine State, it has been reported by local residents that due to power outages, internet disruptions, and security conditions, private banks, including Myanmar Economic Bank, have been closed since last March.

Due to the closure of banks in Rakhine, U Soe Naing from the Sitwe region stated that there are significant commission fees when withdrawing money through Wave Money and KBZ Pay.

“It’s been a long time since there was nothing. The military has been blocking things for almost a year now. Everything is gone, nothing is left, only the last bit of white stone. The Myanmar Economic Bank has also been shut down by the military, as far as I know. They are working with Hyundai. At first, they had to pay a lot of interest rates, up to 10 percent. I’ve heard that later on, it became much less. If you want to transfer, the military doesn’t have much difficulty. Sometimes you can get through on the phone, sometimes you can’t. Why? Because there are still flight routes available. There are difficulties in the liberated areas. However, I’ve heard that they are still managing to operate through the lines.” Spoke to Arakha Times.

In the Kyaukphyu Township, it has been a long time since private banks have been operating; although they were previously open, it is understood that deposits and withdrawals cannot be made now.

However, due to the escalating military situation in Kyaukphyu, all private banking operations have been suspended since the 15th of this month, leaving only the government’s Myanmar Economic Bank operational.

Due to the halt in banking operations, there have been reports of cash shortages within Rakhine State, and local business owners and residents believe that the economy may also start to decline.

Due to the recent shutdown of private banks, it has become difficult to deposit and withdraw money, and if there is no circulation of funds, all local businesses may also come to a standstill, said Ko Min Khaing from the Kyaukphyu region.

“Currently, banks have started to experience a slight jump. It’s no longer possible to withdraw money or do transactions. Most people are only able to withdraw cash through services like K Pay and Wave Money, and even then, it’s mostly outside. At the very least, they have to pay a 5% fee. For 100,000, that means at least 5,000. In border areas, it can be 7,000 or 8,000. If we talk about it, if private banks can no longer provide cash withdrawals, it will feel like all economic activities have come to a halt. There will be difficulties everywhere. Furthermore, the Myanmar Economic Bank has its own regulations on how money can be withdrawn, and those who have accounts in private banks will all face hardships. It will lead to a situation where money will no longer circulate.” Spoke to Arakha Times.

It is reported that the AA (Arakan Army) has taken control of towns near Kyaukphyu, such as Ma Ei and Ramree, and has also secured the entrance at Zinchung Gate, which leads out of Kyaukphyu. The area around Kyaukphyu is also under the control of the AA, and fighting continues to be intense in Taungup and Ann.