Malawi introduces 2,000 Kwacha banknote

The Reserve Bank of Malawi (RBM)  has introduced a 2,000 Malawi kwacha banknote to try to ease desperate cash shortages.

K2,000 bank note

K2,000 bank note

Central bank governor Charles Chuka told a news conference that the development follows the devaluation of Malawi Kwacha on the market as well as economic turmoil.

He the new bank note will be put intocirculation in December this year but is expected to become almost worthless.

“Due to economic crisis and devaluation of our kwacha, the RBM will introduce the K2000 note that is expected to be on the market in the coming month of December,” said Chuka.

Chuka said the new bank note will bear the portrait of freedom fighter Reverend John Chilembwe while the motif on the back of the K2,000 note will be  the Malawi Univesity of Science and Technology at Ndata in Thyolo.

Some quarters says poor Malawians should expect tough life because of the development.

Prices are doubling every day and food and fuel are in short supply in the southern African nation.

But previous issues of new banknotes have done little to curb the cash crunch faced by Malawias.

The development comes after  Chuka told Parliamentary Committee on International Relations  that  the high inflation and high interest rates prevailing in the country are not a result of lack of knowledge among technocrats including those at the Central Bank but are fruits of political choices.

According to Chuka, RBM is only responsible for the management of inflation and interest rates but the power to ensure that the two rates are low rests in the hands of politicians.

“Malawi does not need advice. Your Minister [of Finance Goodall Gondwe] has been involved in advising other countries and those countries have been successful. In Malawi, issues are not about technical advice but political choices. We, the Reserve Bank and the Treasury work together almost on daily basis. We know what we want. We know what needs to be done. We know what Malawi needs in the next 50 years.

“Sometimes, I ask myself as to what is important for the politician? Is it to win an election or reduce poverty? It might be, with this poverty, you might lose a seat. But the way, I know Malawian politics, somehow it is still easy for you to win a seat. But why is it that Malawians are getting poorer and poorer every year but are still giving you a seat? What is the problem?” Chuka wondered.

He gave an example of Rwanda where he said despite the availability of few technocrats in that country, people have just checked their politics and the economy is flourishing.

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36 thoughts on “Malawi introduces 2,000 Kwacha banknote”

  1. Marco says:

    The 2000 looks exactly the same as the 500, And it even has the same guy on it, and the note has the same color. Could they not have made the notes more different?

  2. sasamba says:

    soon our currency will be like Tanzania shiling, govt exprnditure is still high our country has almost five state houses/lodges despite being one of the smallest countries in africa our nieghbours have only one state lodge yet are 5 times bigger than Mw. We spend alot of millions to maintain these houses every year. Political choices are really hurting us.being a country without abandant natural resources our leaders need to be smart enough to save Malawian from poverty

  3. Trendex says:

    JUST PRINT MORE OF ONE THOUSAND NOTES

  4. Kyala says:

    At last the bootlicking of dpp by top public officials has to stop and the truth be told. The worm that turned. Despite his previous flaws, this action by chukar is welcome and has been long overdue. Politicians are only interested in winning seats and enriching themselves. Poverty of the Malawian masses is way back in their heads. Stupid buggers!!!

    I don’t agree with the 2000 introduction, they should have gone for a higher denominator, say 5000 or 10,000. Not much difference between 1000 and 2000.

    Watch you politicians especially the dpp thugs plundering the country.

  5. The question is not a matter of huge amount of cash being carried around—but finding a right balance of how this valueless Kwacha can be controlled in the market; and perhaps more importantly, the RBM should put mechanisms that would help to deviate from cash burden economy to cashless economy. A perfect example here would SA and, of course, not forgetting the mighty U.S. Thus, if there are any countries to put forward legitimate complains about too much money being moved in the pockets—it should have been the two countries aforementioned above; considering that former has R200 and latter has $100 as there their highest respective notes. Facilitate bank to bank transactions; establish card oriented economy—if you want to talk about the problem of huge cash in the market.

  6. Qwerty says:

    Go electronic Mr. Chaka. Wasn’t the ATS mooted for that? Off course you benefit from seignorage by currency issuance.

  7. MUTHARIKAWOYEE says:

    INFLATION IS THE SIGN OF THE TIMES. ONE CURRENCY GLOBAL

  8. wilfred says:

    from zimbabwe to malawi

  9. A BEhumane nkhani ili apa siya otsutsa boma, its poor fiscal and monetary policies being implemented by the government, kodi inu Pitala adakupangirani chiyani choti that twist your mind to back up every wrong step he does? I can see what level of understanding you are! Because if if you can look at all this, you are one out of 50 who showed that dont know what they are talking, what are the implications of releasing K2000 note at the expence of already dwindling economy? Will the positives outweigh negatives of the new banknote on laymans language? Now i can see what kind of a person you are, this is a sole reason why you always backup wrong things. May be you are a cadet who always gets manipulated by these cowards called politicians especially those who belong to this walking devil called dpp, SHAME ON YOU.

  10. Mwananyanian says:

    Gratifying to see, again, a portrait of the Original Freedom Fighter Of Malawi, on our currency.
    The man’s portrait should have been on a bill even during the time of Robert Armstrong (aka Kamuzu Banda). But for the latter who just hogged the limelight, and put the names like Chilembwe in cold storage.
    Here’s hoping we will never have another denomination with Kamuzu’s portrait in future. An affront to democrats in this country; and a reminder of the serious human rights abuses by him, his coterie and Party, MCP.

  11. Issa says:

    Economy ikuyenda bwino. The choices we make determine our future,

  12. Vikunowa says:

    As long as the fiscal and monetary policies are not well aligned, we will continuously blame the politicians. I believe with certainty that our technocrats are very much clueless of what should be done.

    1. Be Humane says:

      @vikunowa. Did you listen to what Chuka said about policians vs technocrats. Have you worked with politicians before?. I guess not because if you did you would not say this nyasi you are saying. Fool

  13. be humane says:

    When I hear all this I cry. Who else will bail Malawi out of this mess? Kunjaku kwadzadza madeya okhaokha palibe chanzeru akutiwonetsa kuti angatithandize. Munthu othandiza amaoneka ndi mfundo zake osamangoti Pitala walephera chakuti chakuti chakuti koma ine ndidzakuthandizi. Mudzinena chimene chikumayenera kuchitika nanga inu mukadzatenga boma mudzatani kuti Malawi atukuke? Mwaona mfundo za Clinton and Trump nthawi ya Kampeni. Chonde anzathu otsutsa boma tithandizeni osati kutsutsa mmisonkhano ayi koma kunyumba ya Malamulo kapena mmakomiti mumakhala aja. Chifukwa mumalalata kumsonkhano koma muli mu committee yofunikira kwambiri mpakanso kumakhala ma chair koma osachita kanthu. Haaaa! Malawi wathu ndani adzatipulumutse ife pa moto wa sulfure tikupsya nawowu?

    1. Handsome Chaponda says:

      be humane! Thumps up!!!! You are a good man! True Bootlicker!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    2. Handsome Chaponda says:

      be humane DPP ngati sinakupatse nyumba mu Area 10, then you are a useless bootlicker. You sweat blood when it comes to defending these thugs. I think you are one of them. Ngati sindiwe Chaponda then you are Dausi.

  14. Chilungamo Chimawawa says:

    Chuka is right. its politicians who are destroying Malawi’s economy. they are busy using government money to conduct political rallies and making foreign trips while our economy is going down at a terrific speed. Please Pro. Mutharika please reduce those political rallies and reduce the number of vehicles on your convoy. Your fellow African leaders whose economy is doing fine they just use around 4-6 vehicles for a convoy. also pick along with you the only minister who is concerned with that particular meeting or rally, not all ministers on board. God is watching you and will punish all of you one day!!!!

  15. Chilungamo Chimawawa says:

    kkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk Trump Mutharika ali mmadzi

  16. Nj\'omba says:

    This is crazy. To us business people who like handing big cash, It will be better if they introduce MK 5000 and MK 10000

  17. Opals says:

    True that baveheart Chuka! It’s firstly a public choice problem reifying in lack of aggregate fiscal dicipline, allocative ineffiency and technical inefficiency. As long as politicians are left to their devices: To freely poop, fart and pee on the fiscus; effective monetary policy will remain illusory. We need a more stringent fiscal regulatory regime that should be rigorously enforced. The RBM and Treasury should have clear monetary and fiscal targets respectively; anchored in solid legal instrumentation and a sound PFM architecture. Reinforcing the hard budget constraint should never be negotiable.

  18. HE the Life President Mfuti Kasinja? says:

    Chuka are you try to despise our beloved leader or what? watch your toung otherwise you will be fired.

  19. B Sajw jnr says:

    Are they phasing out – systematically – the K500 bank note? The color and face – john Chilembwe – is that of the current K500 note. I have heard a number of experienced bankers that the K500 is the least preferred and thus least used bank note – both in town and in rural areas, followed by the K200 one. The K50 is the most popular, followed surprisingly by the K1000 one, alias the ‘aloe vera’.

    1. Marco says:

      yea so strange,, they making exactly same color same guy.
      but why do we expect them to know this?
      they dont even care or realize so there we have it. just use dollars

  20. Mayira says:

    The development comes after Chuka told Parliamentary Committee on International Relations that the high inflation and high interest rates prevailing in the country are not a result of lack of knowledge among technocrats including those at the Central Bank but are fruits of His Excellency the president Pro. Peter Arthur Wamuthalika.

  21. diso says:

    koma kumeneko lulululuuuuuuuuuuu!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  22. sabata Chayasimbi says:

    I didnt expect Chuka to speak like that. This country has been destroyed by politicians and are totally clueless.

    1. Chembe says:

      At last the governor has just put his job on the line…but his contract is almost over. What I would ask the government is to renew his his contract and let him work wiithout politicians interference

  23. Musa says:

    MALAWI….EISH……

  24. Trump trump wayambapo zintchito zake mpa K 2,000.00 note pa Malawi kkkkkkk koma kumeneko by ya Zimbabwe.

  25. Apusi Mavalo says:

    Shuka, do you think we are silly? Unamwa bibida kapena?. Who sets interest rates, is it politicians or you bankers? Who deny Malawians loans but always gives to Asians, it is politicians or Bankers? In Nigeria, The central bank at the the forefront of a program that is giving farmers low interest loans so they can buy quality seeds and prepare their farms. Results is high rice yield , providing both food security and income to farmers thus reducing poverty while saving the country forex- as there is no more need to import rice. What is the bank in Malawi doing to help its people and fight poverty? You talk rubbish and fools will think you are sensible but in truth your stupid lot are the very reason why this country is poor. No innovation or vision, you can not even copy what your counter parts are doing. Go to hell.

    1. kanchenga says:

      You can say that again. These people are full of shiteee

  26. Chuka will be fired. How can he say as it is?

  27. Ungwelu says:

    Wheeeeeeee!!!!!!!!!!!!

    1. shosholoza says:

      It is my first time to hear a Malawian to come boldly like this. True Malawi is spoiled because of the nature of politics that we fall. If Malawians can come to their senses and recognizes what they can do Malawi is the most richest country in the world. Charles thank you for such braveness. I know it pains you to see your fellow Malawians perish because of ignorance.

    2. mudzalila says:

      There are people in Malawi who are really concerned about the way Malawi government is running the countryand Chuka is one of them. This country has no politicians only those in it o get rich.Someone please flatten this country and start again!

      1. Chakhalira says:

        Anthuni, Anthuni, How do you say Chuka Walankhula, Chuka walankhula!!!!! The brave man I Know salankhula zotelezi. He should just have resigned. Izi zikuchitika apazi, palibe chanzeru cheni cheni. Ku Zimbabwe zinayamba chonho, mpaka their own currency is so worthless that the younger generation will never know their currency ( Zimbabwe Dollar) other than the US Dollar and the Zuid South African Rand. Naye Chukayo akudya nawo ndipo adya nawo. Stand up as a Man and resign. do NOT speak because your contract is almost over, ayi!!!. Remember, your MK2,000.00 will NOT help any Ordinary Malawian except these politicians and crooked business men. If you are for Malawians A Bambo, show the Politician by resigning.
        Remember, the old man Goodall Gondwe, when he spoke , a White Man listened to him. To day when he speaks in Malawi, who listens to him? So what has he done? He has just Joined them and seriously eat on the expense of poor Malawians.

        Brother, I will only take you serious , if you resign!!!!!

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