New Money

With the devaluation of the kwacha and the increased cost of things, the government decided to print new currency. The largest bill we have had is the MK500, which with devaluation is worth about $2 US. Withdrawing MK30,000 for the bank ($120) I come away with 60 MK500 bills, quite a wade to carry around. The decision was to print a MK1,000 bill, the first of its kind. Then the thinking was to reduce the size of the bills, to cut down on paper costs and to make the handling easier.



Old and new money



Actually, the plans were set under the late President’s reign, before devaluation, but he died before it was accomplished. He wanted his face to appear on all the new bank notes. After his death and with the announcement of the devaluation (from official price of MK160/$1 to MK 250/$1), the need for a lager denomination was even greater. The decision was made to put the first President of Malawi, Hasting Kamuzu Banda, on the new MK1000 bill and to change the faces on all the other bills but the MK500 which would continue to carry the face of John Chilembwe, the one regarded as the father of freedom for Malawi. His face is on all the old paper currency. The Mk200 features Rose Chibambo, the first female cabinet member, and the only person featured who is still living. The MK100 features James Fredrick Sangala, the founder of the Nyasaland African Congress. The MK50 has the face Inkosi Ya  Makhosi Gomani II, Philip Zitonga Maseko, the most development conscious paramount chief in the 1940’s and 50’s. On the MK20 is Inkosi Ya Makhosi M’mbelwa, Lazalo Mkhuzo Jere, the most fearless leader of the northern or Jere Ngoni, who mobilized his people to support the Nyasaland African Congress and Dr. Kamuza Banda in the 1950’s. All the new bills are smaller than the old ones

The new bills were issued on Wednesday. There has been great conversation about them. Everyone is eager to see them. Today when I went to the ATM, the machine dispensed the new bills. I was surprised. They are much smaller. Of course, they are new, so they are crisp and easier to handle, but even so, they look and feel different. Yesterday, Maxwell requested that as soon I got a new bill that I show it to him. He was curious. He is not alone. Even at the ATM, as the money was dispensed, folks were stopping before putting the bills in their wallets and examining them. There was conversation about how to handle them, mixed with the old bills, which are still legal tender until May 22, 2013. So until then, we have two sizes and a new denomination. This is a lot to be absorbed and to get used to. There is reason for conversation. We will become used to them and handle the two sizes for the next year, but for the time being, it is a novelty.