By Chisomo Phiri
Reserve Bank of Malawi (RBM) Governor Wilson Banda has turned down assertions that the Central Bank is planning to introduce a new MK10,000 banknote.
Speaking at a press briefing in Lilongwe on Friday, Banda described rumours as fake saying the bank is not even contemplating the move.
“These are just speculations and the Reserve Bank of Malawi has no such plans,”said Banda.
The Central Bank governor however,asked media houses in the country to be factual and accurate when reporting financial matters saying misrepresentation of the same can attract bitter reactions on the market which could pose a burden on the consumers.
He cited an article from one of the local newspapers which misquoted the current US Dollar exchange rate against kwacha as K2,700, instead of its official rate of K1,700.
Banda said such misrepresentation is dangerous as it has the potential of moving traders to adjust prices which has a direct effect on the consumers.
“People trust the media and take whatever has been published seriously. If you are not sure, my office is readily available to provide you with the actual figures,” said the Central Bank governor, who said despite a few misrepresentations, the media continues doing a great job.
On the realignment of the local currency, Banda described the move as necessary, saying the misalignment was punitive on the side of the exporters, as they were paid less.
He then said the realignment has come as an incentive to the exporters who were losing before due to misalignment.
Banda said the increase in prices of imported goods and goods with imported contents is a true reflection of their value as the currency used to import them is trailing at a required rate.
He noted with concern an increase in prices of goods beyond the percentage at which the kwacha was devalued, as well as an increase in prices of locally produced goods without foreign content, saying such is unjustifiable.
