By Mcloyd Chilangiza:
The Reserve Bank of Malawi (RBM) has warned small-scale business operators against rejection of any banknote that is used as legal tender in the country.
This follows spot checks which showed that some small-scale business operators in Lilongwe, Blantyre and Dowa districts are rejecting K20 notes.
RBM spokesperson Mark Lungu said anyone rejecting the notes is operating against the law.
“As at now, the K20 remains legal tender and should be accepted by all as it has not been withdrawn from circulation by the Reserve Bank of Malawi. As such, it is not right for traders to reject it when buyers present it,” Lungu said.
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Lungu said the bank is conducting sensitisation campaigns on money circulation.
Meanwhile, economic expert Betchani Tcherani has said the development shows loss of the buying power of the currency.
“It might be the case that our currency has lost buying power but no matter what price you are going to quote, it means you are going through the K20, so you cannot say no to the currency,” Tchereni said.
Tchereni also urged the citizenry to abide by the RBM Act, which enshrines the K20 banknote as legal tender.
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Section 20 of the RBM Act says it is only the bank which has power to call in its notes and coins on giving not less than three months’ notice in the gazette, and notes and coins cease to be legal tender on the expiry of the period for exchange announced at the time of a such a recall.
