An earthquake that disrupted transportation routes has led to a cash shortage in Homalin town, located in the upper part of Sagaing Region, lasting over a week, according to local business owners and residents.
To address the cash scarcity, money transfer and withdrawal services have been offering cash to those transferring funds, providing a percentage-based incentive, sources say.
A resident from Homalin’s Nant Taw area said: “Right now, cash isn’t circulating, so people transferring money get a cut. If someone transfers 10 million kyat, they might get 100,000 kyat back. Getting cash otherwise is really tough. But if you transfer, you can get money back.”
The cash needed for Homalin typically flows from goldsmith and gold businesses in Mandalay.
However, the earthquake has halted this flow for over a week. Although some cash is now coming from business owners in Monywa, it remains insufficient, according to reports.
The cash shortage has driven gold prices in the local market far below market rates, with goldsmith businesses and gold traders buying at discounted prices, residents say.
With the Thingyan festival approaching, demand for cash has surged. Despite gold being bought at lower prices, business owners are still selling to meet their needs, sources add.
A local resident said: “Gold prices yesterday were somewhat adjusted, but they’re not at market rates. The market price is over 6 million kyat, but here it’s around 5 million. The other day, I asked, and they were offering just over 4 million. If you ask if people are selling, of course, some are. If they don’t sell, they’re stuck. With Thingyan coming, people need cash for gold panners, diesel, packaging materials, rice, oil—everything adds up. During Thingyan, rowers expect their pay, so you need cash to settle things. Since there’s no cash, people sell gold to cover it.”
Homalin is a major hub for gold mining in central Myanmar, with daily cash and financial transactions amounting to tens of millions of kyat.
Sent by Shanni Voice.
