Union of Burma Bank: Aung San Kyat Banknotes (1972-1979)

Explore the Union of Burma Bank: Aung San Kyat Banknotes (1972-79), featuring diverse Aung San portraits across 1, 5, 10, 25, 50, and 100 Kyats denominations. This pivotal series offers unique designs and historical significance in Burma's monetary evolution. Following our discussion of the People's Bank of Burma 1965 issue, which was the second series to feature Aung San, this article delves into the next significant banknotes issued in Burma also bearing his image – those from the Union of Burma Bank.

Brief History of Burma During the 1970s

The 1970s were a pivotal decade in the history of Burma (now Myanmar), marked by significant political, economic, and social changes. Following the military coup in 1962, General Ne Win established a one-party socialist state under the Burma Socialist Programme Party (BSPP). This regime continued to dominate throughout the 1970s, implementing policies that profoundly shaped the nation.

In 1974, Burma adopted a new constitution that formalized the one-party system and Ne Win's leadership. The constitution aimed to centralize power and promote socialist policies, emphasizing self-reliance and the nationalization of key industries. This period saw the government's efforts to control the economy through the establishment of state-run enterprises and cooperatives, which aimed to eliminate private enterprise and reduce foreign influence.

Economically, the 1970s were challenging for Burma. The government's isolationist policies and emphasis on socialism led to economic stagnation. Agricultural productivity declined, and the country faced shortages of essential goods. The rigid control over economic activities stifled innovation and investment, resulting in widespread poverty and limited economic growth. The government's monopoly over trade and production created inefficiencies and corruption.

The government sought to manage the economy through direct intervention rather than market mechanisms. One of the significant monetary policy tools used was credit control. The state tightly regulated the allocation of credit, directing funds primarily towards state-owned enterprises and socialist development projects. Private sector access to credit was severely restricted, which stifled entrepreneurship and private investment. One of the key monetary policies relates to the formation of the Union of Burma Bank.

Overview of the Union of Burma Bank

The transition from the People’s Bank of Burma to the Union of Burma Bank marked a significant shift in Burma's financial landscape, reflecting broader economic and political transformations in the country during the mid-1970s. This change was part of a series of reforms aimed at centralizing and streamlining the banking system under the socialist economic policies implemented by General Ne Win’s regime.

The People’s Bank of Burma, established following the nationalization of private and foreign banks in 1963, was a cornerstone of this socialist economic system. It was responsible for the central banking functions and provided commercial banking services. During the early 1970s, the People’s Bank of Burma faced challenges, including inefficiencies, corruption, and difficulties in implementing monetary policy effectively. There was a growing recognition that a more centralized and streamlined banking institution was necessary to support the government’s development goals and manage the country’s finances more effectively.

On 30 April 1972, the government replaced the People’s Bank of Burma with the Union of Burma Bank (UBB). The name is similar to the Union Bank of Burma that existed from the independence of Burma to the establishment of the People's Bank of Bank and should not be confused. The Union Bank of Burma was designed to consolidate the functions of central and commercial banking under one entity, reflecting a more centralized approach to economic management. The Union of Burma Bank was tasked with managing the country's monetary policy, issuing currency, regulating credit, and handling foreign exchange operations.

The establishment of the UBB aimed to address the shortcomings of the previous banking system. It sought to improve efficiency, reduce corruption, and ensure better control over the allocation of financial resources. By centralizing banking functions, the government hoped to facilitate the implementation of its socialist policies more effectively, directing credit to state-owned enterprises and development projects.

The Union of Burma Bank played a crucial role in managing the country's economy during a period of significant state control. It was responsible for issuing currency and maintaining the fixed exchange rate of the Burmese kyat. The UBB also regulated credit, ensuring that financial resources were allocated to priority sectors in line with government policies.

Union of Burma Bank 1st Series

As mentioned above, on 30 April 1972, the government replaced the People’s Bank of Burma with the Union of Burma Bank. In the same year, the state-run Security Printing in Wazi (SPW), set up with the technical assistance of Giesche & Deverient (G&D), was also established.

On 30 September 1972, the 25 Kyat banknote, the first banknote issued by the Union of Burma Bank, was introduced. This was followed by the 1 Kyat, 10 Kyat, 5 Kyat, 100 Kyat, and then 50 Kyat banknotes in order of their issue date. The banknotes were printed by Security Printing in Wazi. This series of banknotes with their vibrant colors and detailed artwork reflect the involvement of G&D.

Key Common Features

On the front side, on the top center slightly towards the right, is the name of the banknote issuer name in Burmese, "pyi daung zu myanmar naing ngan ban" i.e. Union of Burma Bank. The issuer name in English "Union of Burma Bank" is shown on the rear side of the banknote. However, they appear at different positions. On the 1 Kyat, 10 Kyat, 25 Kyat, 50 Kyat, and 100 Kyat, the issuer's name appears on the top but at slightly different positions. On the 5 Kyat, it appears at the bottom.

The prefix and serial numbers of the note are displayed at the top right and bottom left in red color. The one at the top right is a combination of English letters and Western Arabic numerals, while the one at the bottom left is a combination of Burmese letters and Burmese numerals. In many denominations, the one at the bottom left appears a little difficult to see, especially in notes that are well-circulated and in poor condition. In both places, the prefix and serial numbers are displayed on the same line.

Unlike the previous two issues which had identical portraits of General Aung San on all denominations, the 1st series issued by the Union of Burma Bank does not appear to have any key common features at all. Maybe one other key common feature is the position of Aung San portrait's, i.e. it is on the left side of the front of the note but his portrait on all six denominations is not identical.

1 Kyat Banknote

The 1 Kyat banknote, the second note introduced in the series, was issued for circulation on 30 December 1972. The banknote measures 124 x 60 mm. The color scheme of this note is green, blue, and brown. The banknote bears the portrait of Aung San wearing a Japanese army uniform with a cap.

The denomination in the Burmese script "tit kyat" is shown on the front center and rear bottom left. This is a new spelling introduced based on the advice of General Ne Win. The denomination in English "ONE KYAT" is shown on the front bottom right and rear bottom center. The value 1 in Burmese numerals and Western Arabic numerals is displayed at various places on the banknote. The most prominent of those is the English numeral shown inside an ornate circle at the center left of the rear side.

The main illustration on the reverse is the textile spinning wheel. The watermark on this note is Aung San which appears in the white space on the front right and can also be easily seen from the rear left. The banknote has a solid black security thread.

Denomination: 1 Kyat
Issuer: Union of Burma Bank
Size: 124 x 60 mm
Color: Green, blue, and brown
Obverse Design: Aung San with cap
Date: None
Signature: None
Material: Paper
Security Thread: Solid black thread
Watermark: Aung San
Printer: Security Printing Wazi
Issue Date: 30 December 1972
Catalog Number: Banknote Book B1001; Pick 56

5 Kyat Banknote

The 5 Kyats banknote, the fourth note introduced in the series, was issued for circulation on 31 October 1973. The banknote measures 136 x 70 mm. The color scheme of this note is blue, purple, orange, and green. The banknote bears the portrait of Aung San wearing a Japanese army uniform when he was to receive the Order of the Rising Sun decoration from the Japanese Empire in 1943. Aung San is not wearing any hat or cap.

The denomination in Burmese script is shown on the front center and rear bottom left. The denomination in English "FIVE KYATS" is shown on the front bottom right and rear center towards the right. The value 5 in Burmese numerals and Western Arabic numerals is displayed at various places on the banknote. The most prominent of those is the English numeral shown at the center-right of the rear side.

The main illustration on the reverse is a man climbing a palm tree. The watermark on this note is Aung San which appears in the white space on the front right and can also be easily seen from the rear left. The banknote has a solid black security thread.

Denomination: 5 Kyat
Issuer: Union of Burma Bank
Size: 136 x 70 mm
Color: Blue, purple, orange, and green
Obverse Design: Aung San without cap
Date: None
Signature: None
Material: Paper
Security Thread: Solid black thread
Watermark: FIVE KYATS and Aung San
Printer: Security Printing Wazi
Issue Date: 31 October 1973
Catalog Number: Banknote Book B1002; Pick 57

10 Kyat Banknote

The 10 Kyats banknote, the third note introduced in the series, was issued for circulation on 30 June 1973. The banknote measures 146 x 80 mm. The color scheme of this note is red, orange, and violet. The banknote bears the portrait of Aung San wearing a uniform with a peaked cap.

The denomination in the Burmese script "tit se kyat" is shown on the front center and rear bottom left. This is a new spelling introduced based on the advice of General Ne Win. The denomination in English "TEN KYATS" is shown on the front bottom center-right and rear bottom right. The value 10 in Burmese numerals and Western Arabic numerals is displayed at various places on the banknote. The most prominent of those is the English numeral shown at the center-right of the rear side.

The main illustration on the reverse is a decorative circular tray with a stem of six dancing legendary human birds lifting the tray. The watermark on this note is Aung San which appears in the white space on the front right and can also be easily seen from the rear left, and the text TEN KYATS. The banknote has a solid red security thread with printed Burmese text.

Denomination: 10 Kyat
Issuer: Union of Burma Bank
Size: 146 x 80 mm
Color: Red, orange, and violet
Obverse Design: Aung San with peak cap
Date: None
Signature: None
Material: Paper
Security Thread: Solid red thread with Burmese text
Watermark: TEN KYATS and Aung San
Printer: Security Printing Wazi
Issue Date: 30 June 1973
Catalog Number: Banknote Book B1003; Pick 58

25 Kyat Banknote

The 25 Kyats banknote, the first note introduced in the series, was issued for circulation on 30 September 1972. This is the first time in the history of Burma banknotes to have this denomination. The banknote measures 155 x 90 mm. The color scheme of this note is brown, orange, green, and blue. The banknote bears the portrait of Aung San wearing a uniform without any hat or cap. Two mythical lions are accompanying the portrait of Aung San.

The denomination in the Burmese script “hnit se nga kyat” is shown on the front center and rear bottom left. The denomination in English "TWENTY FIVE KYATS" is shown on the front bottom center-right and rear bottom center. The value 25 in Burmese numerals and Western Arabic numerals is displayed at various places on the banknote. The most prominent of those is the English numeral shown at the right of the rear side.

The main illustration on the reverse is the “pin sa rupa”, a mythical creature formed by combining five different animals, i.e. with the body of a horse, the wings of a bird, the head of a dragon, the tail of a fish, and trunk of an elephant. The watermark on this note is Aung San which appears in the white space on the front right and can also be easily seen from the rear left, and also the text 25 KYATS. The banknote has a solid red security thread with printed Burmese text.

The banknote was demonetized on 5 September 1987.

Denomination: 25 Kyat
Issuer: Union of Burma Bank
Size: 155 x 90 mm
Color: Brown, orange, green, and blue
Obverse Design: Aung San without cap
Date: None
Signature: None
Material: Paper
Security Thread: Solid red thread with Burmese text
Watermark: 25 KYATS and Aung San
Printer: Security Printing Wazi
Issue Date: 30 September 1972
Catalog Number: Banknote Book B1004; Pick 59

50 Kyat Banknote

The 50 Kyats banknote, the sixth and last note introduced in the series, was issued for circulation on 30 April 1979. The banknote measures 166 x 100 mm. The color scheme of this note is brown, violet, green, and blue. The banknote bears the portrait of Aung San donning a traditional Burmese cloth cap known as a gaung baung.

The denomination in the Burmese script “nga se kyat” is shown on the front center and rear top left. The denomination in English "FIFTY KYATS" is shown on the front bottom center-right and rear bottom right. The value 50 in Burmese numerals and Western Arabic numerals is displayed at various places on the banknote. The most prominent of those is the English numeral shown at the center-right of the rear side.

The main illustration on the reverse is the galon, a mythical creature formed by combining half human and half bird, in a dancing posture astride a dragon. Saya San, a peasant leader against British rule, used a flag showing a mythical bird seizing a dragon to symbolize Burmese victory over the British. The watermark on this note is Aung San which appears in the white space on the front right and can also be easily seen from the rear left, and also the text 50 KYATS. The banknote has a solid red security thread.

The banknote was demonetized on 3 November 1985.

Denomination: 50 Kyat
Issuer: Union of Burma Bank
Size: 166 x 100 mm
Color: Brown, violet, green and blue
Obverse Design: Aung San wearing a cloth turban
Date: None
Signature: None
Material: Paper
Security Thread: Solid red thread
Watermark: 50 KYATS Aung San
Printer: Security Printing Wazi
Issue Date: 30 April 1979
Catalog Number: Banknote Book B1005; Pick 60

100 Kyat Banknote

The 100 Kyats banknote, the fifth note introduced in the series, was issued for circulation on 16 April 1976. The banknote measures 176 x 110 mm. The color scheme of this note is blue, green, and orange. The banknote bears the portrait of Aung San wearing a traditional Burmese dress and donning a traditional Burmese cloth cap known as a gaung baung.

The denomination in the Burmese script “tit yar kyat” is shown on the front center and rear top left. This is a new spelling introduced based on the advice of General Ne Win. The denomination in English "HUNDRED KYATS" is shown on the front bottom right and rear bottom center. The value 100 in Burmese numerals and Western Arabic numerals is displayed at various places on the banknote. The most prominent of those is the English numeral shown at the right of the rear side.

The main illustration on the reverse is a Burmese harp. The watermark on this note is Aung San which appears in the white space on the front right and can also be easily seen from the rear left and also the text 100 KYATS. The banknote has a solid red security thread with printed Burmese text.

The banknote was demonetized on 3 November 1985.

Denomination: 100 Kyat
Issuer: Union of Burma Bank
Size: 176 x 100 mm
Color: Blue, green and orange
Obverse Design: Aung San wearing a cloth turban
Date: None
Signature: None
Material: Paper
Security Thread: Solid red thread with Burmese text
Watermark: 100 KYATS and Aung San
Printer: Security Printing Wazi
Issue Date: 16 April 1976
Catalog Number: Banknote Book B1006; Pick 61

Conclusion

This third series of banknotes featuring Aung San, i.e. the banknotes issued by the Union of Burma Bank, with its intricate designs, cultural motifs, and security features of these notes provide a fascinating glimpse into the past, illustrating the complexities of Burma. In the next article, we will take a look at the next series issued by the Union of Burma Bank.

Frequently Asked Questions

Q: What historical context led to the issuance of banknotes by the Union of Burma Bank?

A: The Union of Burma Bank (UBB) was established on April 30, 1972, replacing the People's Bank of Burma. This change was part of General Ne Win's regime's efforts to centralize and streamline Burma's banking system under socialist economic policies, following the 1962 coup d'état and subsequent nationalization of banks.

Q: What distinct feature characterized the portraits of General Aung San on this series of banknotes?

A: Unlike previous issues that had identical portraits, the Union of Burma Bank's first series (1972-1979) featured diverse portraits of General Aung San across different denominations. These included Aung San in a Japanese army uniform with or without a cap, and donning a traditional Burmese cloth cap (gaung baung).

Q: What denominations were issued in the Union of Burma Bank's first series featuring Aung San?

A: The series included six denominations: 1 Kyat, 5 Kyats, 10 Kyats, 25 Kyats, 50 Kyats, and 100 Kyats. Notably, the 25 Kyat banknote, introduced on September 30, 1972, marked the first time this denomination was issued in Burma's banknote history.

Q: Which denominations in this series were later demonetized?

A: Among the denominations issued, the 25 Kyat banknote was demonetized on 5 September 1987. The 50 Kyat and 100 Kyat banknotes were demonetized earlier, on 3 November 1985.