Malawi: RBM issues postdated bank notes

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Director in the Reserve Bank Governor's office Ralph Tseka, justified the action saying of late there has been accelerated expiry of 50 kwacha notes which should last eight months in circulation.

"Consumers' handling of the bank notes is one major factor that is speeding the wearing out of bank notes forcing the central bank to have to replace them with postdated notes," he said.

Commentators have said the central bank's action equals issuance of postdated cheques.

Normal practise

"They were issued at the end of May so that they can still be used in the month of June...it's a normal practise in the central banking industry," he said in an interview with Zodiak Radio.

A shoe trader at Lilongwe Central Market James Mpokosola said they first thought they had been victims of counterfeit notes.

"Someone bought a pair of shoes at K4, 500 and all were K50 notes and when another customer came to buy a belt, she refused to receive change after noticing the dates saying the notes were fake money," said Mpokosola.
He said the central bank should not wait until people are shocked with such actions before giving out their explanation.