By Twink Jones Gadama
BLANTYRE-(MaraviPost)-The Reserve Bank of Malawi (RBM) has come forward to dispute assertions claiming that the MK20 banknote is no longer functional.
The bank’s Public Relations Officer, Mark Lungu in a telephone interview with The Maravi Post firmly stated that it is incorrect and misleading to refuse receiving MK20 denominations based on their alleged non-functionality.
The issue emerged when minibus drivers and several other traders began rejecting the MK20 banknotes, citing concerns over their usability due to the devaluation of the national currency, the kwacha.
However, the Reserve Bank has clarified that such refusals are not in alignment with the country’s legal framework governing currency transactions.
“Let me make it clear that it’s a crime to reject MK20 and anyone refusing to take this banknote must be reported to Police,” said Lungu.
Officer Lungu emphasized that the central bank, as the authority responsible for issuing and managing the nation’s currency, strictly upholds the legitimacy and functionality of all banknotes in circulation.
He urged the public and businesses alike to accept and utilize the MK20 banknotes without hesitation.
Lungu further highlighted that refusal to receive legal tender, including the MK20 banknote, is considered a violation of the law, “Any individuals or entities found engaging in such practices may face legal consequences”.
Despite the reports of rejection from some quarters, the Reserve Bank of Malawi remains committed to ensuring the smooth functioning of its currency.
It encourages citizens and businesses to report any incidents of refusal to accept MK20 banknotes, enabling the authorities to take appropriate action and maintain a robust financial ecosystem.
As the situation unfolds, the Reserve Bank of Malawi continues to engage with relevant stakeholders to address concerns, clarify misconceptions, and reinforce the proper usage and acceptance of the MK20 banknote.
Meanwhile, Maravi Post has established that minibus drivers as well as those plying small-scale businesses are refusing to take MK20 amid devaluation concerns.
