6 November 2017

Malawi Contemplates On Introduction of K5, 000 Banknote

Lilongwe — Government says it plans to introduce a K5, 000 banknote, a development it says will lift the burden of people carrying a large number of banknotes when buying a single item.

Minister of Finance Economic Planning and Development, Goodall Gondwe, revealed the news in an interview with Malawi News Agency (Mana) at Capital Hill in Lilongwe on Monday.

Normally when a bigger banknote is introduced, people associate the development with increase of

prices of goods to follow. However, the minister says it is not true that when that happens then the prices of goods will go up on the market.

"It's very true that the Ministry of Finance is pushing for the production of K5, 000 bank notes soon.

"It costs eight million dollars (about K5.8 billion) for ordering new bank notes, and it is a lie that when we come up with this new bank note then we will have prices of goods on the market increasing," Gondwe said.

He further explained that Malawi is one of the few countries in the SADC Region with the least banknote giving an example of neighbouring Tanzania, which he said has a 10,000-shilling banknote while beyond SADC the banknote for Uganda is even higher."

"If we continue in the situation we are in now without coming up with a higher banknote, then we [will] continue losing a lot of billions for replacement of the denominations.

"It is also laborious to carry a huge bag with money just to buy one item, but with this new note it will become simpler," he said.

According to the minister, even the replacement of old banknotes costs a lot of money, let alone when you need to replace a lot of old but smaller banknotes.

In speaking about introduction of the new bank note, the minister was reacting to rumours from certain quarters about government's impending introduction of the K5, 000 banknote into its circulation.

Presently, the biggest banknote in circulation is K2, 000.


- Govt Decries Aborted Dialogue, 'Very Bad Moment for Malawi'

Malawi government has expressed its disappointment over civil society organisations (CSOs) decision to withdraw from… Read more »

See What Everyone is Watching

Copyright © 2017 Malawi News Agency. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 600 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.