Malawians Fear K5, 000 to Trigger High Inflation
Hours after the Reserve Bank of Malawi has let the K5, 000 note into circulation, some Malawians are afraid of high inflation and difficulties in business transactions.
Speaking to Zodiak this morning, one of the minibus drivers, hardware trader, Wyson Jeffrey and mobile money agent, Mcleen Patela, say it's obvious the high bank denominator would trigger rise in prices of goods and struggles to make money exchanges in the country.
"We have welcomed the bank note. But, to say the truth, we are in for trouble, prices of goods will go up due to this K5, 000. Currently, prices are already high, but they will be higher than this and life will be unbearable for locals.
"For us to do business, it will be difficult. We expect people in the communities to get something and buy our goods, but now they would not manage, hence affecting us", Jeffrey said.
One mobile money agent, Macleen Patela, adds ", we welcome the bank note because government has approved it, but we expect difficulties in business transactions since our Kwacha has already depreciated. Similarly, for you to find change, it will be a struggle. We were already finding it hard to transact with K2,000...so just imagine this one".
"I must be honest with you; we are not happy with this. Life in the communities will be difficult. Now you will not buy anything with K50," said one taxi operator.
However, on the other hand, Reserve Bank of Malawi Spokesperson, Ralph Tseka, told us the K5, 000 bank note has enhanced security features, that would make it difficult for someone to produce and on the other apart helping the citizenry to easily identify the fake notes.
The Central Bank has introduced the bank note in response to currency management policy that provides guidance on how to react to various economics developments and some other important reasons, such as, inflation.
RBM has used K2.8 billion to produce the K5, 000 and improve K2, 000.