Malawian kwacha

Malawian kwacha
Current coins of the Malawian kwacha.
ISO 4217 code	MWK
Central bank	Reserve Bank of Malawi
Website	www.rbm.mw
User(s)	Malawi
Inflation	7.2%
Source	"Money Supply and Inflation in Malawi: An Economic Investigation," International Journal of Applied Economics and Finance, 6(3): 77-88, 2012.
Subunit
1/100	tambala
Symbol	MK
Coins
Freq. used	1, 5, 10 kwacha
Rarely used	1, 2, 5, 10, 20, 50 tambala
Banknotes	20, 50, 100, 200, 500, 1000 kwacha

The kwacha (/ˈkwætʃə/; ISO 4217: MWK) is the currency of Malawi as of 1971, replacing the Malawian pound. It is divided into 100 tambala. The kwacha replaced other types of currency, namely the UK pound sterling, the South African rand and the Rhodesian dollar, that had previously circulated through the Malawian economy. The exchange rate of the kwacha undergoes fixed periodical adjustments, but since 1994 the exchange rate has floated.^[1] In 2005, administrative measures were put in place by Bingu wa Mutharika^[2] to peg the exchange rate with other currencies.^[3] Banknotes are issued by the Reserve Bank of Malawi. In May 2012, the Reserve Bank of Malawi devalued the kwacha by 34% and unpegged it from the United States dollar.^[2]

Etymology

The name kwacha derives from the chewa and Bemba word for "dawn", while tambala translates as "rooster" in Nyanja. The tambala was so named because a rooster announces 'dawn'.

History

The kwacha replaced the Malawian pound in 1971 at a rate of two kwacha to one pound.

As of 9 May 2011 one British pound sterling was equal to 257.7172 kwacha, one US dollar was equal to 152.2933 kwacha and one South African rand was equal to 23.7740 kwacha.

Coins

A one kwacha coin from 1992

The first coins introduced in 1971 were in denominations of one, two, five, ten and twenty tambala. In 1986, fifty tambala and one kwacha coins were also introduced. In January 2007, five and ten kwacha coins, which actually bear a mint date of 2006, were also released into circulation. In 2012 new one, five and ten kwacha coins were released into circulation^[4]

The one and two tambala coins are composed of copper-plated steel. The five tambala coin is of nickel-plated steel. The fifty tambala and one kwacha coin are composed of brass-plated steel.^[5]

Banknotes

Old Malawian 1 kwacha note, carrying the date 1 Dec 1990, depicting former President-for-Life Hastings Banda on the front and workers in a Tobacco field on the reverse.

In 1971, banknotes dated 1964 were introduced in denominations of 50 tambala, 1, 2 and 10 kwacha. 5 kwacha notes were introduced in 1973 when the 2 kwacha note was discontinued. 20 kwacha notes were introduced in 1983. 50 tambala notes were last issued in 1986, with the last 1 kwacha notes printed in 1990. In 1993, 50 kwacha notes were introduced, followed by 100 kwacha in 1993, 200 kwacha in 1995 and 500 kwacha in 2001.

As of 2008, the following banknote denominations are in circulation:

According to an article in the Nyasa Times dated 9 March 2012, within the next six months the Reserve Bank of Malawi will introduce a whole new series of notes, including a 1,000-kwacha note, twice the largest denomination currently in circulation. The notes were announced in Biantyre on 8 March by Governor Dr. Perks Ligoya. The new notes will be much smaller in size than the current notes, which serves as a cost-cutting measure. The new 1,000-kwacha note is to be printed by De La Rue.^[7][8]

On 23 May 2012, the Nyasa Times reported that the Reserve Bank of Malawi introduced the new 1,000 kwacha note into circulation along with the proposed new notes. The new 1,000 kwacha note is valued at around US$4. The new kwacha has the face of the first president Kamuzu Banda on the front and the back carries a depiction of Mzuzu maize silos.^[9]

On May 23, the new 20 kwacha note contained an error. On the back of the note is a building identified as the Domasi Teacher's Training College (now known as the Domasi College of Education). However, it is reported that the building is in fact the Machinga Teacher's Training College.^[10]

The Reserve Bank of Malawi will revise its new family of notes (which were introduced on May 23, 2012) so that they are more "blind friendly". According to the Malawi Union of the Blind, the current notes have raised dots to aid in recognition of the denominations, but the dots are too small to be useful.^[11]

References

Wikimedia Commons has media related to Money of Malawi.

Economy of Malawi Currency: Malawian kwacha Communications Banking Communications History of Trade Transportation Industries: Agriculture Tourism