The kwacha (;

ISO 4217 ISO 4217 is a standard published by the International Organization for Standardization (ISO) that defines alpha codes and numeric codes for the representation of currencies and provides information about the relationships between individ ...

: MWK, official name Malawi Kwacha) is the currency of

Malawi Malawi, officially the Republic of Malawi, is a landlocked country in Southeastern Africa. It is bordered by Zambia to the west, Tanzania to the north and northeast, and Mozambique to the east, south, and southwest. Malawi spans over and ...

as of 1971, replacing the

Malawian pound Demographic features of the population of Malawi include population density, ethnicity, education level, health of the populace, economic status, religious affiliations and other aspects of the population. Region distribution Northern regio ...

. It is divided into 100 tambala. The kwacha replaced other types of currency, namely the British

pound sterling Sterling (symbol: £; currency code: GBP) is the currency of the United Kingdom and nine of its associated territories. The pound is the main unit of sterling, and the word '' pound'' is also used to refer to the British currency general ...

, the

South African rand The South African rand, or simply the rand, (currency sign, sign: R; ISO 4217, code: ZAR) is the official currency of South Africa. It is subdivided into 100 Cent (currency), cents (sign: "c"), and a comma separates the rand and cents. The Sou ...

, and the

Rhodesian dollar The Rhodesian dollar (''R$ or Rh$'', ) was the currency of Rhodesia between 1970 and 1980. It was subdivided into 100 cents. History The dollar was introduced on 17 February 1970, roughly two weeks before the declaration of a republic on 2 Ma ...

, 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. In 2005, administrative measures were put in place by

Bingu wa Mutharika Bingu wa Mutharika (; born Brightson Webster Ryson Thom; 24 February 1934 – 5 April 2012) was a Malawian politician and economist who was President of Malawi from May 2004 until his death in April 2012. He was also President of the Democ ...

to peg the exchange rate with other currencies. Banknotes are issued by the

Reserve Bank of Malawi The Reserve Bank of Malawi is the central bank of Malawi established in the year 1964 located in Lilongwe. The current governor is Wilson Banda. The Bank is active in promoting financial inclusion policy and is a leading member of thAlliance for ...

. In May 2012, the Reserve Bank of Malawi devalued the kwacha by 34% and unpegged it from the

United States dollar The United States dollar (Currency symbol, symbol: Dollar sign, $; ISO 4217, currency code: USD) is the official currency of the United States and International use of the U.S. dollar, several other countries. The Coinage Act of 1792 introdu ...

. The currency was further devalued by 25% by the

central bank A central bank, reserve bank, national bank, or monetary authority is an institution that manages the monetary policy of a country or monetary union. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the mo ...

in May 2022 followed by another 44% devaluation in November 2023 raising

inflation rate In economics, inflation is an increase in the average price of goods and services in terms of money. This increase is measured using a price index, typically a consumer price index (CPI). When the general price level rises, each unit of curre ...

in Malawi.

Etymology

The name ''kwacha'' was first used in Zambia, where the

Zambian kwacha The Kwacha (ISO 4217 code: ZMW) is the currency of Zambia. It is subdivided into 100 ngwee. Etymology The name ''kwacha'' derives from the Nyanja, Bemba, and Tonga language word for "dawn", alluding to the Zambian nationalist slogan of a ...

was introduced in 1968. It derives from the

Chinyanja Chewa ( ; also known as Nyanja ) is a Bantu language spoken in Malawi and a recognised minority in Zambia and Mozambique. The noun class prefix ''chi-'' is used for languages, so the language is often called or Chinyanja. In Malawi, the name wa ...

Chichewa Chewa ( ; also known as Nyanja ) is a Bantu language spoken in Malawi and a recognised minority in Zambia and Mozambique. The noun class prefix ''chi-'' is used for languages, so the language is often called or Chinyanja. In Malawi, the name wa ...

word meaning "it has dawned", while ''tambala'' translates as "rooster" in

. The tambala was so named because a hundred roosters announce the dawn.

History

The kwacha replaced the

in 1971 at a rate of two kwacha to one pound. 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. one

Euro The euro (currency symbol, symbol: euro sign, €; ISO 4217, currency code: EUR) is the official currency of 20 of the Member state of the European Union, member states of the European Union. This group of states is officially known as the ...

is equivalent to 797.42 Kwachas.

Coins

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 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.

Banknotes

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. 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 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. 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. 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. 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.Malawi Central-Bank to issue new blind friendly bank notes
Amalawi.info. Retrieved 2012-07-15.

References

{{Portal bar, Africa, Malawi, Money, Numismatics Circulating currencies Currencies of Africa Currencies of Malawi Currencies introduced in 1971

Etymology

History

Coins

Banknotes

See also

References