New K500, K200 banknotes will accelerate Kwacha depreciation – Sichinga

By Jane Chanda

Former commerce minister Robert Sichinga says President Hakainde Hichilema’s administration is introducing new K500 and K200 banknotes because of the Kwacha’s devaluation, a development he said will only accelerate currency depreciation.

And economist, Dr John Musantu, said the timing to introduce new Kwacha notes was wrong owing to the instability in macroeconomic fundamentals such as inflation and the exchange rate.

In an interview with Daily Revelation yesterday, Sichinga said the decision would impact ordinary citizens who heavily relied on cash transactions for daily purchases, leading to difficulties in obtaining change, particularly for small transactions.

He said the introduction of higher denomination notes would also have a psychological impact on inflation, leading to higher prices to affect

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