Old, broken, or otherwise unusable bank notes can be exchanged for new ones at state-owned banks and private banks, according to an announcement by the Central Bank of Myanmar.
The CBM has been trying to motivate citizens to exchange decrepit notes since 1993 when they first announced this initiative.
Under the bank note exchange, local and private banks send their collected old notes to the CBM for a centralized exchange. However, whether because of a lack of a banking industry, lack of public trust in banks, or simply laziness, the CBM has noted they have not received many old notes and much of the country’s hard currency has fallen into disrepair.
Fully understanding the implications of being a cash-based country, CBM is trying to stress the importance of exchanging these bank notes in fear of giving rise to a minor inflation.
“While the CBM has ordered us to designate an exclusive counter for bank note exchange, we’re finding it to be quite cost-incurring. We have to accept broken and old bank notes, even if they don’t match the CBM’s criteria or are beyond recognition,” U Zayar Kyaw, General Manager of CB Bank, told Myanmar Business Today.
Prior to 1992, the Ministry of Planning and Finance allowed permitted the Myanma Economic Bank and its branches to exchange the old and new bank notes.
Source : Myanmar Business Today