Economic Experts Ask Traders to Still Use Lower Currencies
By Glory Msowoya Blantyre, April 5, Mana: Thecountry’s economic experts have strongly faulted traders who refuse to transact in lower currency banknotes with some members of the public, saying the said banknotes are legal tender in the country. The sentiment follows a concern from Reserve Bank of Malawi (RBM) that some traders refuse to conduct […]
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By Glory Msowoya
Blantyre, April 5, Mana: Thecountry’s economic experts have strongly faulted traders who refuse to transact in lower currency banknotes with some members of the public, saying the said banknotes are legal tender in the country.
The sentiment follows a concern from Reserve Bank of Malawi (RBM) that some traders refuse to conduct monetary transactions using K20 and K50 banknote denominations from members of the public.
In a press statement issued on Tuesday, the Reserve Bank of Malawi said the bank does not intend to remove these denominations from the Malawi currency structures.
“The two bank notes remain legal tender in the country but in the near future, those two denominations will be converted into coins,” reads part of the statement.
Speaking to Malawi News Agency on Tuesday, University of Malawi Economics Professor, Ben Kaluwa, said the tendency by some traders that refuse to use lower denomination banknotes is standing in the way of people exercising their right to transact on the market.
“This trend is causing inconvenience to people in lower income level who may not even afford high denomination currency.
“They are denying people’s right to transact in market, and this can affect the country’s economy as it has negative impact on micro level,” said Kaluwa.
Another economic expert, Dr Betchani Tchereni of the Malawi University of Business and Applied Sciences (MUBAS), reminded the traders that despite losing value in lower currencies, the said denominations are still legal tender in the form of coins and banknotes.
“We have got legal tender in the form of coins and banknotes and in different dominations; we have to accept that all that is legal when it is tendered as medium of exchange.
“If anybody is not accepting that, it is illegal because our laws state that one can use a K20 and K50, but failure to do so, they should face the law,” said Tchereni.
Meanwhile, the Reserve Bank of Malawi has advised the public to report to police all traders who refuse to transact in lower currency notes.
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