Kwacha

The kwacha is the name of the currency used in two southern African countries, Zambia and Malawi. The term comes from Bantu languages such as Chichewa and Nyanja and means dawn or new day, a symbolic reference to renewal following independence.

Zambia: The Zambian kwacha (ISO code ZMW) is the currency of Zambia, subdivided into 100 ngwee. It was introduced in 1968, replacing the Zambian pound at a fixed rate. In 2013, the kwacha was redenominated: 1 new kwacha equals 1000 of the old kwacha. The Bank of Zambia is the central bank and issuer; banknotes and coins in various denominations circulate as legal tender. The currency has experienced inflation and exchange-rate volatility, and monetary policy aims to maintain price stability.

Malawi: The Malawian kwacha (MWK) is the currency of Malawi, subdivided into 100 tambala. It was introduced in 1971, replacing the Malawi pound. The Bank of Malawi is the central bank that issues the kwacha; Malawi’s economy has experienced inflation that has affected the currency’s value. The kwacha remains the legal tender and is used in everyday transactions alongside growing digital payments and mobile money services.

Both currencies are the country’s legally recognized medium of exchange and are issued by their respective central banks. Together, the kwacha plays a central role in their monetary systems and is the subject of ongoing monetary and exchange-rate management.