The Reserve Bank of Malawi (RBM) has reiterated that refusing to accept and transact using K20 banknotes is against the law.

RBM spokesperson Dr. Mark Lungu clarified that the K20 banknote has not been withdrawn from circulation and urged Malawians to continue using it.

Dr. Lungu's remarks follow reports of traders and consumers rejecting the banknote, a practice he described as unfortunate.

He also condemned the act of forcing customers to accept commodities, such as sweets, as a substitute for change of less than K20.

"We strongly condemn this practice as it goes against our policies. We expect people to receive any change, no matter how small, after purchasing commodities in the market," said Dr. Lungu. "We have not withdrawn any money from the market nor do we have plans to do so," he added.

However, Shaban Karonga, a businessman from Liwonde, stated that they have been refusing the K20 banknote due to its diminished purchasing power following frequent devaluations of the local currency.

"It is very unfortunate that we are being forced to use this banknote at a time when it no longer holds value. I suggest its withdrawal from the market to save on production costs," said Karonga.

Since last year, Malawi has experienced two major devaluations of its currency, amidst its continued depreciation against the US dollar.