Myanmar has faced a severe economic crisis after the military seized power 6 months ago. There is a huge cash crunch in Myanmar at the moment. Alam is that to withdraw cash, local people have to stand in line near ATMs from 3 o’clock in the morning. There is such a shortage of cash that people are unable to withdraw money even after standing for many hours. To reduce the rush of people in banks and ATMs, money is also being filled in ATMs every day. But it has not been used yet. In view of the cash crunch and economic crisis, local people in Myanmar have been allowed to withdraw Rs 9,000 per person every day.
The impact of the economic crisis in Myanmar is clearly visible. People are unable to make purchases due to lack of cash. Traders are also unable to pay their workers and creditors. The value of Myanmar’s currency Kyat has also fallen 20 times against the dollar. Cash remains in less than 100 ATMs across the country. Due to hoarding of currency, many businessmen want to take cash instead of digital payment.
Apart from this, currency brokers give cash in lieu of online payment at a commission of 7 to 15%. The officers of the Myanmar army provide protection to these touts. Many economic experts pointed out that Myanmar is headed for a serious financial crisis.
Richard Horsey, senior adviser to the International Crisis Group, said that due to the severe economic crisis, people’s confidence in the government, banks and the economy is decreasing. After the military coup, 945 people died in the violence. Most of the people died in the firing of the army. Economic activities have come to a standstill due to the ongoing agitation against the army. The crisis has increased due to the ban on online payment by the army. People are facing many problems due to the shutdown of internet.
If the problem of economic crisis in Myanmar is not fixed soon, then the situation can become even more dire. For the time being, the government has said that very soon the problem of notes will be removed and everything will be normal.