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.

Follow and Subscribe Nyasa TV :

Please share this Article if you like Email This Post Email This Post

More From the World

Sort by:   newest | oldest | most voted
Marco
Guest

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?

sasamba
Guest

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

Trendex
Guest

JUST PRINT MORE OF ONE THOUSAND NOTES

Kyala
Guest

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.

Senior Chief Dauzya
Guest
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… Read more »
Qwerty
Guest

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

MUTHARIKAWOYEE
Guest

INFLATION IS THE SIGN OF THE TIMES. ONE CURRENCY GLOBAL

wilfred
Guest

from zimbabwe to malawi

Binnwell Kachikopa
Guest
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… Read more »
Mwananyanian
Guest

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.

wpDiscuz

More From Nyasatimes