The Republic of Malawi is making a great deal of efforts to make up for the loss of the value of its currency, kwacha. Malawi plans to print 1,000 kwacha note in July 2012.
Owing to rising food prices in the South African state, consumer inflation had increased to 10.3% in January. Additionally, Malawi’s economic growth has also dropped to 6%. The country is highly poverty stricken as well.
Malawi depends upon foreign aid, that accounts for budget’s 40%. The Reserve Bank of Malawi Governor Perks Ligoya said: "We have done this in order to reduce the cost of printing money as the sizes of the currencies have been significantly reduced, adding that Malawi would also phase out its old K20, K50, K100, K200 and K500 notes in July.”
The printing of these 1000 kwacha notes will help in combating the existing inflation scenario in the country and will also revive the country from economic slowdown.