Malawi introduces K5,000 bank note

MK5000

Reserve Bank of Malawi has announced it will introduce K5000 notes which will go into circulation from Thursday, February, 24, 2022.

Governor Wilson Banda has justified the introduction saying the last time the country made such a move to introduce a higher note was the current K2,000 five years ago.

"Among other things, the policy guides that the highest value denomination should not account for more than 60 percent of the total value of the currency in circulation. When that happens  the bank can apply for a number of measures one of them being introduction of a higher bank note denomination," he said adding that the K2,000 bank note has hovered above 80 percent

Banda added lot of developments in the money sector have necessitated review of its minted coins and high banknotes among them portability saying the new note can easily be carried from one place to another.

The governor also played down fears of inflation saying the rate is below 10 percent.