The kwacha (; ISO 4217: MWK, official name Malawi Kwacha) is the currency of

Malawi Malawi (; or aláwi Tumbuka: ''Malaŵi''), officially the Republic of Malawi, is a landlocked country in Southeastern Africa that was formerly known as Nyasaland. It is bordered by Zambia to the west, Tanzania to the north and northeas ...

as of 1971, replacing the

Malawian pound The pound was the currency of Malawi until 1971. 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 ...

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

pound sterling Sterling (abbreviation: stg; Other spelling styles, such as STG and Stg, are also seen. ISO code: GBP) is the currency of the United Kingdom and nine of its associated territories. The pound ( sign: £) is the main unit of sterling, and ...

, the

South African rand The South African rand, or simply the rand, ( sign: R; code: ZAR) is the official currency of the Southern African Common Monetary Area: South Africa, Namibia (alongside the Namibian dollar), Lesotho (alongside the Lesotho loti) and Eswatin ...

, 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, less than a month before the declaration of a republic on 2 Mar ...

, 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 Demo ...

to peg the exchange rate with other currencies. Banknotes are issued by the Reserve Bank of Malawi. 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 ( symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the officia ...

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 much of Southern, Southeast and East Africa, namely the countries of Malawi , where it is an official language, and Mozambique and Zambia. The noun class prefix ''chi-'' is used for ...

or Chichewa word meaning "it has dawned", while ''tambala'' translates as "rooster" in Chichewa. 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 ( symbol: €; code: EUR) is the official currency of 19 out of the member states of the European Union (EU). This group of states is known as the eurozone or, officially, the euro area, and includes about 340 million citizens . ...

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 the Commonwealth of Nations Currencies of Malawi Currencies introduced in 1971