The Reserve Bank of Malawi has introduced a 5000 Malawi Kwacha Banknote. The bank has also introduced an upgraded 2000 Kwacha Banknote.
This was disclosed at a media briefing which took place in Lilongwe this afternoon.
RBM Governor Dr. Wilson Banda said the new banknote will be released on Thursday 24th February, 2022.
Banda said the introduction of K5,000 high bank note results from the bank’s response to its own currency management policy that provides guidance on how to react to various economics developments and some other important reasons.
“According to currency management policies, the high banknote in the economy should not account for more than 60 percent of the total value of currency in circulation. As it stands, the old K2000 banknote has exceeded over 80 percent in currency circulation hence the need to introduce a higher banknote. Buyers will now need one K5000 note to settle a K4000 bill instead of requiring two K2000 banknotes. Portability was also considered as we all know that currency has to be easily and economically carried from one place to another.
“Lastly the enormous pressure on demand for K2000 signifies that the banknote is being used for transaction purposes instead of being a store of value as should be the case for higher denominations. This therefore, calls for a higher denomination banknote to act as a store of value,” explained Banda.
Banda also highlighted the reasons behind the introduction of the upgraded 2000 Kwacha banknote and this include, making K2000 banknote more secure by including modern security features and the replacement of the image of the Malawi University of Science and Technology at the back of the note with an image of Blantyre Magistrate Court which represent the urgent need for the country to fight corruption.
The Introduction of new bank notes both 5000 and 2000 Kwacha will cost the country 2.8 Billion Kwacha.