People wait for a branch of the AYA Bank to open in Yangon on April 12, 2021. (AFP)
On February 12, private banks in Myanmar have imposed daily withdrawal limits following a Central Bank directive aimed at curbing speculation in US dollars and gold. Customers report caps of between 1 million (US$476) and 5 million kyats (US$2,381) per day, with some forced to visit multiple branches or pay agents to access their funds. The measures come amid record-high gold prices and a sharply depreciating kyat, reviving liquidity strains seen since the 2021 coup.
Business implications
The renewed withdrawal caps signal persistent liquidity stress and weak confidence in Myanmar’s banking system. Limited cash access disrupts day-to-day business operations, particularly for small traders and agricultural supply chains that depend on physical payments. Prolonged controls could push more transactions outside the formal banking sector and intensify shifts into gold and US dollars, further weakening financial stability.
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