Damaged notes to cost Reserve Bank of Malawi K69.8bn

Malawi is expected to spend K69.8 billion on damaged banknotes replacement this year, the Reserve Bank of Malawi (RBM) has said. The value has increased from K50.6 billion that was spent in 2025. The central bank says the growing bill is largely due to the careless handling of banknotes, particularly lower denominations. In a presentation at a media capacity-building workshop on economic and monetary issues held in Salima District on Friday, RBM officials said more than K400 billion worth of banknotes would be withdrawn from circulation annually since 2023. According to the bank, lower denomination notes are greatly affected, with nearly all K200 notes and denominations below being destroyed after processing while more than 90 percent of K500 notes and over 70 percent of K1,000 notes are rejected. About 30 percent of K2,000 and K5,000 notes are also removed from circulation, according to the central bank. RBM spokesperson Boston Maliketi Banda said replacing damaged banknotes required the country to secure foreign exchange to pay for printing and shipping. "This is money that could have been used to import medicines, fertilisers and fuel," Banda said. The central bank has since expressed concern over continued rejection of low-value denominations such as K20 notes and coins. Commenting on the issue, Consumers Association of Malawi Executive Director John Kapito said digital payments offered a long-term solution but several obstacles continued to limit their adoption. "There is a need for reliable digital payment systems that can be trusted," he said. Meanwhile, consumer Cosmas Luwanika has said although he had personally adopted a cashless lifestyle, unreliable digital payment systems continued to discourage wider uptake. "I made a personal decision to go completely cashless. "Unfortunately, the inconvenience and occasional embarrassment I still face when electronic payments are unavailable or unreliable show that we have a long way to go," he said. Economics Association of Malawi President Bertha Bangara Chikadza also said the increasing cost of replacing damaged banknotes underscored the need for Malawi to accelerate its transition to a digital economy. Writing on her Facebook page, Chikadza said the wider adoption of digital payment platforms would reduce reliance on cash and help cut avoidable costs associated with printing and replacing banknotes

WIRE — Malawi is expected to spend K69.8 billion on damaged banknotes replacement this year, the Reserve Bank of Malawi (RBM) has said. The value has increased from K50.6 billion that was spent in 2025. The central bank says the growing bill is largely due to the careless handling of banknotes, particularly lower denominations. In a presentation at a media capacity-building workshop on economic and monetary issues held in Salima District on Friday, RBM officials said more than K400 billion worth of banknotes would be withdrawn from circulation annually since 2023. According to the bank, lower denomination notes are greatly affected, with nearly all K200 notes and denominations below being destroyed after processing while more than 90 percent of K500 notes and over 70 percent of K1,000 notes are rejected. About 30 percent of K2,000 and K5,000 notes are also removed from circulation, according to the central bank. RBM spokesperson Boston Maliketi Banda said replacing damaged banknotes required the country to secure foreign exchange to pay for printing and shipping. "This is money that could have been used to import medicines, fertilisers and fuel," Banda said. The central bank has since expressed concern over continued rejection of low-value denominations such as K20 notes and coins. Commenting on the issue, Consumers Association of Malawi Executive Director John Kapito said digital payments offered a long-term solution but several obstacles continued to limit their adoption. "There is a need for reliable digital payment systems that can be trusted," he said. Meanwhile, consumer Cosmas Luwanika has said although he had personally adopted a cashless lifestyle, unreliable digital payment systems continued to discourage wider uptake. "I made a personal decision to go completely cashless. "Unfortunately, the inconvenience and occasional embarrassment I still face when electronic payments are unavailable or unreliable show that we have a long way to go," he said. Economics Association of Malawi President Bertha Bangara Chikadza also said the increasing cost of replacing damaged banknotes underscored the need for Malawi to accelerate its transition to a digital economy. Writing on her Facebook page, Chikadza said the wider adoption of digital payment platforms would reduce reliance on cash and help cut avoidable costs associated with printing and replacing banknotes

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