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Malawian kwacha

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Malawian kwacha
Old coins of the Malawian kwacha.
ISO 4217
CodeMWK (numeric: 454)
Subunit0.01
Unit
SymbolK‎
Denominations
Subunit
 1⁄100tambala
Banknotes20, 50, 100, 200, 500, 1,000, 2,000, 5,000 kwacha
Coins
 Freq. used1, 5, 10 kwacha
 Rarely used1, 2, 5, 10, 20, 50 tambala
Demographics
User(s) Malawi
Issuance
Central bankReserve Bank of Malawi
 Websitewww.rbm.mw
Valuation
Inflation19.90%
 SourceRbm Nov 2016 [1]

The kwacha (/ˈkwætʃə/; ISO 4217: MWK, official name Malawi Kwacha[2]) 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 British 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.[3] In 2005, administrative measures were put in place by Bingu wa Mutharika[4] to peg the exchange rate with other currencies.[5] 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.[4]

Etymology

The name kwacha was first used in Zambia, where the Zambian kwacha was introduced in 1968. It derives from the Chinyanja or Chichewa word meaning "it has dawned", while tambala translates as "rooster" in Chichewa. The tambala was so named because a hundred roosters announce the dawn.

History

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

As of 30 August 2019, one British pound sterling was equal to approximately 883.43 kwachas, one US dollar was equal to 725.16 kwachas and one South African rand was equal to 47.69 kwachas. As of 30 August 2019 one Euro is equivalent to 797.42 Kwachas.[6]

Coins

A one kwacha coin from 1992

The first coins introduced in 1971 were in denominations of 1, 2, 5, 10 and 20 tambala. In 1986, 50 tambala and 1 kwacha coins were also introduced. In January 2007, 5 and 10 kwacha coins, which actually bear a mint date of 2006, were also released into circulation. On 23 May 2012 new 1, 5 and 10 kwacha coins were released into circulation[citation needed]

The 1 and 2 tambala coins are composed of copper-plated steel. The 5 tambala coin is of nickel-plated steel. The 50 tambala and 1 kwacha coin are composed of brass-plated steel.[7]

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 1992. In 1993, 50 kwacha notes were introduced, followed by 100 kwacha in 1993, 200 kwacha in 1995, 500 kwacha in 2001 and 2000 kwacha in November 2016 to ease desperate cash shortages.[8]

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

1997 Series [9]
Image Value Dimensions Main Colour Description Date of first printing
Obverse Reverse
K5 126 × 63 mm Green John Chilembwe Villagers mashing grain 1 July 1997
K10 132 × 66 mm Brown Children in "bush" school
K20 138 × 69 mm Purple Workers harvesting tea leaves
K50 144 × 72 mm Blue Independence Arch in Blantyre
K100 150 × 75 mm Red Capital Hill in Lilongwe
K200 156 × 78 mm Blue Reserve Bank building in Lilongwe
K500 162 × 81 mm Multi-colour Reserve Bank building in Blantyre 1 December 2001

According to an article in the Nyasa Times dated 9 March 2012, within the next six months the Reserve Bank of Malawi would 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 would be much smaller in size than the current notes, which served as a cost-cutting measure. The new 1,000-kwacha note was going to be printed by De La Rue.[10][11]

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 was valued at around US$4. The new kwacha had the face of the first president Kamuzu Banda on the front and the back carries a depiction of Mzuzu maize silos.[12]

The new 20 kwacha note was found to contain 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.[13]

The Reserve Bank of Malawi is going to revise its new family of notes 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.[14]

2012 Series [15]
Image Value Dimensions Main Colour Description Date of first printing
Obverse Reverse
K20 128 × 64 mm Purple Reserve Bank of Malawi headquarters in Lilongwe; Inkosi ya Makhosi M’mbelwa II (Lazalo Mkhuzo Jere) Domasi Teachers Training College building and tree; stack of books and mortarboard 23 May 2012
K50 128 × 64 mm Light blue and green Reserve Bank of Malawi headquarters building in Lilongwe; Inkosi Ya Makhosi Gomani II (Philip Zitonga Maseko) Elephants, tree, and safari vehicle in Kasungu National Park
K100 128 × 64 mm Red Reserve Bank of Malawi headquarters building in Lilongwe; James Frederick Sangala College of Medicine in Blantyre; stethoscope
K200 132 × 66 mm Blue and violet Reserve Bank of Malawi headquarters building in Lilongwe; Rose Lomathinda Chibambo New Parliament building in Lilongwe
K500 132 × 66 mm Brown and orange Reserve Bank of Malawi headquarters building in Lilongwe; Reverend John Chilembwe Mulunguzi dam in Zomba; water spigot; silhouette of woman carrying container on head and man carrying hoe over shoulder
K1000 132 × 66 mm Green Reserve Bank of Malawi headquarters building in Lilongwe; Dr. Hastings Kamuzu Banda Mzuzu maize silos; stalk of maize (corn); silhouette of two people mashing maize
K2000 Yellow Reverend John Chilembwe; outline of Malawi Malawi University of Science and Technology, Thyolo District 1 June 2016
Current MWK exchange rates
From Google Finance: AUD CAD CHF CNY EUR GBP HKD JPY USD ZAR EUR JPY
From Yahoo! Finance: AUD CAD CHF CNY EUR GBP HKD JPY USD ZAR EUR JPY
From XE.com: AUD CAD CHF CNY EUR GBP HKD JPY USD ZAR EUR JPY
From OANDA: AUD CAD CHF CNY EUR GBP HKD JPY USD ZAR EUR JPY

References

Wikimedia Commons has media related to Money of Malawi.
  1. ^ "HOME :: Reserve Bank of Malawi". Archived from the original on 2010-11-03. Retrieved 2010-10-30.
  2. ^ ISO 4217 amendment number 162 dated 24 Feb 2016, change of currency name
  3. ^ Frederic L. Pryor, The political economy of poverty, equity, and growth: Malaŵi and Madagascar Oxford University Press, 1990 ISBN 0-19-520823-4, p. 415
  4. ^ a b "Malawi devalues currency by a third". Al Jazeera. 8 May 2012. Retrieved 2012-05-08.
  5. ^ Annual Report on Exchange Arrangements and Exchange Restrictions , International Monetary Fund, 2006, ISBN 1-58906-569-7, p[page 716
  6. ^ XE Currency Converter
  7. ^ "Malawi." NumisMaster. F+W Publications, Inc. 2011. Web. 17 February 2011.
  8. ^ "Malawi: Govt Introduces 2,000 Kwacha Banknote". 2016-11-11. Retrieved 2016-11-12., Nyasa Times
  9. ^ "Currency: Notes & Coins". Rbm.mw. Archived from the original on 2014-04-22. Retrieved 2014-03-23.
  10. ^ Linzmayer, Owen (2012). "Malawi". The Banknote Book. San Francisco, CA: www.BanknoteNews.com.
  11. ^ Malawi new banknote family confirmed BanknoteNews.com. Retrieved 2012-05-17.
  12. ^ "Malawi releases new Kwacha bank notes | Malawi Nyasa Times – Malawi breaking news in Malawi". Nyasatimes.com. Retrieved 2014-03-23.
  13. ^ Reserve Bank goofs on new K20 banknote, Mawali Today, retrieved 2012-06-04.
  14. ^ Malawi Central-Bank to issue new blind friendly bank notes, Amalawi.info. Retrieved 2012-07-15.
  15. ^ "Malawi new banknote family confirmed | Africa". Banknote News. 2012-06-05. Retrieved 2014-03-23.
Preceded by:
Malawian pound
Ratio: 2 kwacha = 1 pound 		Currency of Malawi
1971 – 		Succeeded by:
Current
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