Concerns are growing in some parts of Arakan (Rakhine State) under the control of the Arakan Army (AA), after counterfeit 10,000 MMK banknotes were found circulating in recent days.
Locals and business owners reported that fake notes are increasingly mixed with genuine currency during everyday transactions, making them difficult to detect at first glance.
Residents describe a situation where fake and genuine notes are mixed, making it difficult to tell them apart during routine buying and selling.
“I didn’t notice a fake 10000 MMK note was given to me while selling rice. I only found out after I circulated the money upon arriving back home. I didn’t want to make a fuss over just one note, so I tore it up and threw it away,” said a female rice shop owner in Kyauktaw Township.
People in affected areas said the fake notes can be spotted if closely inspected. They reportedly have uneven edges, washed-out colors, and paper that feels unusually thin and smooth. The security thread is reportedly imitated with only a printed color line, not even an actual thread.
With these incidents increasing, residents said they have become more careful whenever they receive 10,000 MMK notes, especially during busy market transactions.
Amid ongoing conflict and rising commodity prices in Arakan State, residents also expressed worry that counterfeit money could further strain already difficult living conditions.
“At a time when everything is getting more expensive and our profits are declining, losing even one 10,000 MMK note to counterfeit money is a serious loss for small sellers like us,” said a woman selling snacks.
Those working in money transfer and withdrawal services said they are better protected because they rely on cash-counting machines and have so far managed to avoid accepting counterfeit notes. However, they stressed that ordinary store owners, who often lack access to such equipment, remain vulnerable and need to stay alert.
Experts warn that if counterfeit currency continues to spread, it could undermine confidence in the kyat (MMK) and lead to wider financial harm across communities.
Locals are now urging the United League of Arakan (ULA), the political wing of the AA, to take stronger action to investigate and stop the circulation of fake banknotes in local markets and cash networks.
“If fake money keeps spreading, it won’t just cause losses, it could also push prices up further and worsen inflation. The AA needs to tighten monitoring and take serious action against those producing and distributing counterfeit notes,” said a business owner.
Under current law, anyone found knowingly using counterfeit currency can face up to 3 years in prison or a fine, while those involved in producing fake money may face prison sentences ranging from 10 to 20 years.
