National Bank stops issuing K20 notes

The short supply of and deteriorating state of K20 banknotes has led to National Bank of Malawi stopping issuance of it.

The bank’s Corporate Affairs Manager Annie Magola said the move was because the Reserve Bank of Malawi (RBM) was no longer issuing the K20 notes despite several requests for it.

But Nyasa Times understands that the central bank not was in short of the K20 banknotes but trying to enforce promotion of  coin usage by consumers on the market.

The slow extinction of the K20 will mean that K50 will now be the lowest banknote among the available ones followed by a K100, K200 then K500.

Rumours have also been rife that government plans to introduce a K1, 000 banknote.

RBM’s list of legal tender notes and coins currently issued and in used in the economy are K500, K200, K100, K50, K20 banknotes with K10, K5, 50 tambala, 20 tambala, 5 tambala, 2 tambala and 1 tambala coins.

In a related development, sources from the central bank indicate that the Kwacha will be devalued further before January to around K250 against the dollar.

They say this is one of the conditions set by International Monetary Fund to have Malawi back on its program which has gone off track.

If re-admitted to the program Malawi stands to benefit by winning back donor trust and funds amounting to over $500 million.

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