Cash withdrawal fees across Arakan (Rakhine) State are surging as cross-border trade with India stumbles after an aerial bombardment of Kyauktaw’s Indian Market, according to local traders and money transfer operators.
The slowdown in transport and commercial links with India has triggered a severe shortage of physical currency across the blockaded region.
Lacking formal banking operations, which remain suspended due to the conflict, residents rely heavily on mobile financial platforms like KPay, KBZ Banking, and WavePay.
Money transfer operators purchase physical cash from cross-border traders using digital bank balances and resell it to subagents.
However, as trade activity stalls, fewer digital transactions are occurring while local demand for cash withdrawals remains high, driving service fees up to between 6,500 and 7,000 kyats per 100,000 kyats in townships such as Werathani, Anjanapura, Mrauk-U, Kyauktaw, Ponnagyun, and Rathedaung.
Traders emphasize that cross-border commerce with India serves as a primary driver of cash circulation in Arakan State.
With junta-enforced blockades and airstrikes halting regular trading runs, local livelihoods are suffering an immediate shock.
The crisis is further compounded by widespread unemployment and soaring commodity prices, leaving many households dependent on remittances sent from relatives working in Thailand, Malaysia, and China.
For many families, the steep hike in withdrawal fees—which previously capped at around 4,000 kyats per 100,000 kyats—erodes a substantial portion of the financial support sent from abroad, exacerbating the humanitarian and economic toll on local communities.
