The currency of Malawi has undergone several transformations, reflecting the country's evolving political and economic landscape. This article explores the history of Malawi's currency, from its early use of the pound to the introduction and development of the kwacha.
The Pound Era
Until 1971, the pound was the currency of Malawi. From 1932, Malawi (then known as Nyasaland) used the Southern Rhodesian pound. In 1955, a new currency was introduced, the Rhodesia and Nyasaland pound. This was replaced by the Malawian pound in 1964, following Malawi's independence. The pound was subdivided into 20 shillings, each of 12 pence.
On 6 July 1964, Nyasaland became independent from Britain and was renamed Malawi. For two years, Elizabeth II remained head of state as Queen of Malawi. In 1964, coins were issued in copper-nickel and in the denominations of 6d, 1/-, 2/- and 2/6. All bore the portrait of Hastings Banda. 1d coins were introduced in 1967.
Introduction of the Kwacha
The kwacha is the currency of Malawi as of 1971, replacing the Malawian pound. The kwacha replaced the Malawian pound on 15 February 1971 (on the same day the United Kingdom decimalised) at a rate of two kwacha to one pound. It is divided into 100 tambala.
The name kwacha was first used in Zambia, where the Zambian kwacha was introduced in 1968. It derives from the Chinyanja or Chichewa word meaning "it has dawned", while tambala translates as "rooster" in Chichewa.
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The kwacha replaced other types of currency, namely the British pound sterling, the South African rand, and the Rhodesian dollar, 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 to peg the exchange rate with other currencies.
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. The 1 and 2 tambala coins are composed of copper-plated steel. The 5 tambala coin is of nickel-plated steel.
Banknotes
Banknotes are issued by the Reserve Bank of Malawi. 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.
Upon becoming a republic in 1966, Malaŵi became a single-party state under the presidency of Hastings Kamuzu Banda, who remained president until 1994, when he was ousted from power. His portrait appears on the front of all notes issued during his three decades in office, with scenes on the back emphasizing agriculture's great importance to Malawi's economy. Notes during his presidency also carry watermarks (and later registration devices) of a rooster, the symbol of Banda's Malawi Congress Party.
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Recent Developments
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.
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 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). The Reserve Bank of Malawi is going to revise its new family of notes so that they are more "blind friendly".
Malawi Kwacha Today
As of 30 August 2019, 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.
Banknotes in circulation include 20, 50, 100, 200, 500, 1,000, 2,000, 5,000 kwacha.
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| Feature | Details |
|---|---|
| ISO 4217 Code | MWK (numeric: 454) |
| Subunit | 1⁄100 tambala |
| Banknotes | 20, 50, 100, 200, 500, 1,000, 2,000, 5,000 kwacha |
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