Difficulty of withdrawing money from banks have impact on rubber business

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Mawlamyine, 23 November

The political unrest and the nationwide fighting have made it more difficult to withdraw cash from banks, which has hurt the rubber industry in Mon State, rubber businessmen told Than Lwin Times.

Mon State, which exports raw rubber products to China and Thailand, is facing difficulties in withdrawing money from banks and trading rubber in the market.

A rubber entrepreneur is having difficulty withdrawing money from banks for the second time during the seizure and making transactions because he is unable to withdraw as much money as he needs.

Due to political instability, private banks and junta-controlled banks are disbursing 200,000 kyats per week to individuals and 20 million kyats to businesses, according to traders.

Another rubber entrepreneur told Than Lwin Times, “Because banks cannot withdraw as much money as they need, it is difficult for them to run the business, and even if there is a market, we cannot buy and sell.”

The Central Bank of the military council said that during the current political instability, people are withdrawing large amounts of money from banks, and those withdrawing cash over 100 millon kyats are being closely monitored by the Central Bank, the Bureau of Special Investigation, and the Financial Intelligence Unit (FIU).

The central bank has warned that those who withdraw more cash from banks than they need, those who are involved in speculation, and those who spread propaganda to the public pushing them to withdraw cash will be dealt with effectively under existing laws.

The central bank said that people are inviting a return to the situation of paying a percentage and taking cash as in 2021.

After the military coup in Myanmar, the value of the Myanmar currency decreased, and people’s trust in banks decreased. Around March 2021, the military council restricted cash withdrawals because people were withdrawing large amounts of money from banks.

News – Than Lwin Times

Photo: CJ

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