Inflation: Malawi to introduce new bank note

Nov 21, 2016

A 2000 Malawi Kwacha note will be introduced to control inflation

Following the devaluation of Malawi Kwacha, the Reserve Bank of Malawi (RBM) said a new bank note of 2000 MK will be issued and in circulation by 19th of December. According to RBM, the decision to issue the new note is to manage the inflation and interest rates which have made Malawi economy sluggish. Charles Chuka, the RBM Governor said, "RBM is responsible for the management of inflation and interest rates." Currency depreciation, and uncertainty about the future direction of policies have kept inflation above 20 percent on average and the Malawi economy which heavily depends on aid flows, is still feeling the effects of the large-scale pilfering
of public funds uncovered in 2013 which prompted donors to suspend all budget support, forcing the government to print money to cover the deficit. As reported by National Statistical Office of Malawi, the annual inflation rate in Malawi eased to 20.1 percent in October of 2016, from 21.2 percent in September. It was the lowest inflation rate since May 2015. Inflation Rate in Malawi averaged 15.24 percent from 2001 until 2016, reaching an all-time high of 37.90 percent in February of 2013 and a record low of 6.30 percent in December of 2010. The 2000 MK note design will have a motif of Malawi University of Science and Technology on one side and the portrait of Malawi's nationalist and freedom fighter, John Chilembwe on the other side respectively.