Myanmar Central Bank warns financial institutions of fake kyat notes

In a secretly circulated document, Myanmar’s Central Bank in Naypyitaw has acknowledged that fake 500 kyat currency notes were circulating in the market and it has sent an eight-point guideline to all financial institutes to check for fake notes.

The document, a copy of which is in Mizzima’ possession, said a study in the wake of the seizure of fake 500 kyat notes in Nam Hkam township in Northern Shan State in November 2008 reveals that the fake notes are waxed and it is extra-smooth to the touch.

It says that the fake notes do not have the ‘Security Tread’ and there is inconsistency in the font type and sizes. The fake currency note has a yellowish tinge.

A source close to the Bank said the Financial Department of the Central Bank, which circulated the document, instructed all financial institutions including private banks to keep the above points in mind while checking for fake 500 Kyat notes.

But when contacted, a few banks in Rangoon said they had not received any instruction regarding counter-checking of fake 500 kyat notes.

The source, however, said the document is being kept a secret so as to avoid panic among the public. The authorities have warned that there should be no leak about the fake 500 kyats in circulation.

On the contrary, the source said, the government, in a bid to counter the fake 500 kyat notes, had considered printing more of 1000 Kyat notes but later backed off when it found out that printing 1000 kyat notes was expensive.

However, the information cannot be independently verified as yet.

Source: Burma Net News