The Reserve Bank of Malawi (RBM) says it has noted with concern an article circulating in the social media that the Bank is planning to release a K10,000 banknote in October, 2022.
In social media articles, the RBM has been reported to have been planning to release a K10,000 banknote in the month of October, 2022 and it will be in use by December this year.
The rumours are coming few months after the release of the K5,000 banknote.
In a statement dated 3rd August, 2022 signed by its Governor Dr. Wilson Banda, the RBM says it has no intention of issuing the said banknote any time soon, advising the general public that there are a number of conditions which the Bank considers before introducing a higher banknote.
“A higher banknote is when the highest value denomination exceeds 60.0 percent of the total value of currency in circulation, this condition has not yet been at the ratio and is currently at 26 percent,’’ reads the statement in part.
The RBM has advised members of the general public to disregard the fake article and desist from fabricating fake news saying any information on currency matters is always communicated using the appropriate channels.
The Reserve Bank of Malawi (RBM) announced the introduction of a K5, 000 banknote as well as the upgrading of the K2,000 banknote, in November 2021.
RBM Governor Wilson Banda said introduction of the K5,000 banknote would cost the bank K1.4 billion, with the introduction of new features on the K2,000 banknote also costing the financial markets regulator K1.4 billion, taking the overall cost to K2.8 billion.
Banda justified the move at a news conference in Lilongwe saying the bank was responding to the currency management policy that guides it on how to react to economic developments.
The main function of the RBM is to maintain price stability in the economy so as to minimize inflation. It does this by controlling money supply growth using 4 major policy instruments:
Open market operations, liquidity reserve requirement, the discount rate and repurchase arrangements.