Cash shortages drive up mobile money fees across Arakan State

By Admin 13 Jul 2026

DMG Newsroom

13 July 2026, Kyauktaw

Severe cash shortages across Arakan State in recent days have driven up mobile money transaction fees, according to local residents and digital wallet service agents.

In several townships, including Kyauktaw, Mrauk-U, Minbya, Buthidaung, Rathedaung and Thandwe, mobile money agents are charging between K5,500 and K7,000 for withdrawals of K100,000 from mobile wallets.

"At times, hard cash is completely impossible to find," said a woman from Minbya Township. "You cannot blame agents for raising the fees. Cash is so scarce that some mobile money shops have been forced to suspend operations."

Withdrawal fees for K100,000 have risen to K6,000 in Minbya and Buthidaung townships, and K5,500 in Kyauktaw Township. In Rathedaung, Thandwe and Gwa townships, fees have increased further to between K7,000 and K7,500.

The current rates mark a sharp increase from June, when withdrawal fees generally ranged between K4,000 and K5,000 per K100,000, with only a few areas charging close to K6,000.

Mobile money agents attributed the worsening cash shortage to declining trade activity, which has reduced the circulation of physical currency in local markets.

"The fee increase is linked to the monsoon season. Transport disruptions have pushed up freight costs, resulting in fewer commodity shipments entering the region," a mobile money agent from Kyauktaw Township said. "With trade slowing down, cash inflows have declined and liquidity has become scarce."

The cash shortage and rising transaction fees are also affecting humanitarian assistance efforts. Local sources said domestic and international donors are facing difficulties transferring financial aid to flood-affected communities across the region.

Since renewed fighting broke out in Arakan State, conventional banking services have ceased operating in areas controlled by the Arakan Army.

As a result, residents rely largely on digital financial services such as KBZ Pay, KBZ mobile banking and Wave Pay for daily transactions.