Malawi off track as government intends to introduce a K 2000 note

Member of Parliament for Salima North West, Dr. Jessie Kabwila Friday said Malawi is off track as Government intends to introduce a K 2000 note.

She said this in Parliament and wondered why government together with RBM thought of introducing the note when the country has other notes in circulation which are not valued.

Kabwila said, “Madame first Deputy Speaker, I would like to get it from the Honorable Minister of Finance as of where is the wisdom of introducing a K 2000 note to a market where we have other notes which are not valued.

“You talk of the twenty, fifty kwacha’s which are not valuable on the market, yet government thinks of introducing another note to the same market.

According to Kabwila, the introduction of the new note is an indication that government is failing to reinstate the economy and that the inflation rate is going up.

“Furthermore let the Minister explain to this august house as of why it has thought of putting John Chilembwe on the new note leaving out the founder of this nation Kamuzu Banda on the K 1000 note which is lower, ” she noted.

Responding to the questions raised by Dr. Kabwila, Minister of Finance Dr. Goodall Gondwe agreed with Kabwila that the introduction of the new note is as a result of inflation but was quick to say that it is not as high as they assume.

Gondwe firstly tackled the question as of why Chilembwe is appearing on the K2000 note while the founder of the nation is on the K1000 note.

“Let us move the issue away from our emotions. United States founder George Washington, is on one dollar while the leaders who came after him are on higher notes than his. Let us not politicize this, there is no issue here.

“Coming to the issue of why Malawi has introduced a K2000 note, I will tell you that this decision was made by RBM upon consultation with government. They made their arguments why they think so, many countries have notes higher than what we are introducing now, for example, Tanzania, have a 10,000 note,” Gondwe observed.

According to the Finance Minister, inflation takes place everywhere and Malawi is not an exceptional.

He added: ” Every ten years, the money loses value hence the need to introduce more and more higher notes, and will not stop at K2000, time will come when a more higher note will be introduced to the market,”.

The Reserve Bank of Malawi recently announced that it will on December 19,2016 introduce a K 2000 note into circulation.

Source: Malawi News Agency – MANA