Counterfeit K10,000 notes circulate in AA-held areas, raising concerns

By Admin 21 Mar 2026

DMG Newsroom

21 March 2026, Kyauktaw

Counterfeit K10,000 banknotes have been circulating in some areas controlled by the Arakan Army (AA) in recent days, causing concern among residents and business owners, according to local sources.

Residents report that fake notes are often mixed in with genuine currency during daily transactions.

“I didn’t notice a fake K10,000 note while selling rice. It was only when I checked the money at home that I found it. I didn’t want trouble over a single bill, so I tore it up and threw it away,” said a female rice shop owner in Kyauktaw.

According to locals, the counterfeit notes can be identified by uneven edges, faded colors and thin, smooth paper. The security thread is reportedly imitated with colored markings, and the notes often have a glossy printed surface.

As a result, residents say they are now handling cash with increased caution during transactions.

Amid ongoing conflict and rising commodity prices, locals expressed concern that the spread of counterfeit currency will further strain livelihoods.

“At a time when prices are rising and profits are already low, receiving even one fake K10,000 note can mean a loss for small vendors like us,” said a local snack seller.

Business owners involved in money transfer and withdrawal services said they rely on money-counting machines and have so far avoided accepting counterfeit notes. However, merchants urged greater vigilance among shopkeepers and the public.

Analysts warn that the spread of counterfeit currency could erode public trust in the kyat and lead to broader financial instability.

Residents are calling on the United League of Arakan (ULA) to take effective action to investigate and prevent the circulation of fake banknotes.

“As fake money becomes more common, inflation could worsen and prices could rise further. Authorities need to strengthen monitoring systems and take action against those distributing counterfeit notes,” said a business owner.

Under existing laws, individuals knowingly using counterfeit currency can face up to three years in prison or a fine, while those involved in producing fake notes may face prison terms ranging from 10 to 20 years.