Goodall talks economic stimulus as Malawi Kwacha gains against US dollar

Minister of Finance, Economic Planning and Development Goodall Gondwe has said he Development Cooperation Strategy (DCS) which government has launched will act as one of economic stimulation measures for elimination of poverty and resurgence of economic growth.

Gondwe: Economic revival

Gondwe: Economic revival

Gondwe said during the launch of Development Cooperation Strategy in the capital Lilongwe that it will enable implementation of the strategies of the Millennium Development Goal (MDG ll).

“The DCS aims at improving the quality and effectiveness of development cooperation in the country, and to ensure that all support is coordinated, harmonized, and focused on results,” said the Finance minister.

Gondwe said government has already started working on the recommendations highlightened to improve on the livelihood of Malawians.

“We have already started and the impact of the outcome will be seen soon. The Development Cooperation Strategy has also helped the government to find means of mobilizing resources which will have prompted developing partners map out ways of how to contribute to the development projects,” Gondwe said.

He added that the government has to have fiscal discipline and that the resources made available should be used according to the intended purpose(s).

“This is going to prompt developing partners to buy our programs and provide for the resources needed and finance the outlined projects,” he said.

The DCS has outlined principles and priorities in line with global agreements for joint efforts on poverty reduction, improved governance and service delivery for the poor people in the country.

Meanwhile,  Reserve Bank of Malawi (RBM)  has confirmed that the kwacha, which has been on a free-fall since September when tobacco sales closed, has slightly appreciated against the US dollar buoyed by minor export proceeds from some of the country’s commodities.

According to the RBM financial market development report, the kwacha appreciated against the dollar as it traded around K492.3047 against the dollar this week from a high of K520 some few weeks back.

RBM data show that gross official reserves—held in the custody of RBM to prop up the kwacha—increased to $478 million or 2.5 months of import cover during the week ending December 5 from $352 million or 1.84 months of import cover.

At the same time, private sector reserves, which constitute reserves under the direct control of ADBs and foreign currency denominated accounts balances, jumped to $309 million or 1.62 months of import cover from $297 million or 1.56 months of import cover the week before, according to the RBM.

The monthly import cover calculating figure is at $191 million.

RBM spokesperson Mbane Ngwira said the kwacha is responding to local economic developments such as the tightening of monetary policy and other instruments like liquidity reserve requirement (LRR) for forex deposits.

Following the directive on LRR—a fraction of deposits that commercial banks keep with central bank currently at 15.5 percent—the reserves on forex deposits are to be made in kwacha and not in their respective currencies.

“We have ensured that commercial banks should avail the market with forex that is there. The demand [for forex] that was there has been covered by the forex that is available on the market,” said Ngwira as quoted by The Nation.

He explained that minor export proceeds from sugar, tea and pulses have boosted foreign exchange reserves, stressing that the level of forex from tobacco only lasts two months.

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30 thoughts on “Goodall talks economic stimulus as Malawi Kwacha gains against US dollar”

  1. Gimbogo says:

    Tikuona

  2. nyamunyamu says:

    Iwe mtumbuka wa chabe chabe Gudo Gondwe chita resign, kodi atumbuka munakhala bwanji munakhala bwanji,? muzipita kwanu ku mpoto mukapange dziko lanu kumeneko asaaa ,mukusokoneza dzikoli ndi inu ,pali ponse mmaoofesimu head of departmentment atumbuka muzipita kwanu mwatikwana zedi,

  3. ine says:

    What Malawi needs is a government that supports entreprenuership in form of developing startups and helping them grow. Create an environment that conducive for business and empower black Malawians

    Otherwise our country will always rely on donations if we dont do this.
    I think I am tired of reading about donors and so called development partners.

    LETS WAKE UP

  4. I would have thought the simplest way to give our economy a life line was to ensure the country tripled it power generation capacity which would lead to many spine offs from increasing the tax base through job creation and increased foreign currency earnings. A team of the VP, Gondwe and Mwanavekha could easily put such a facility in place.

    Why and what are we waiting for?

    With this then you can sell power to the regional grid and earn more forex when we have spare capacity.

    The multiplier effect will be great.

  5. Zaife says:

    Zayamba kuyenda bwino.Mulungu dalitsani Malawi ndipo mugwetase adani a nsanje onse

  6. Tsamba Likagwa says:

    Ife A Malawi tili ndi vutlo lalikulu. May be you are right kuti sitidzatukuka because we are so pessimestic. Munthu akukuuzani kuti dikilani tikukonza nyansi tinali nazo zija inu mungolira lira ngati ti A khwezule. Ndiye kuti Malemu Mlopwana Murhupali saamanama.

    Please be advised that there is a Government at Capital Hill and is working day and night to make our country a better place to leave for us and our children and their children to enjoy. Ndiye poti munthu ukaluza chisakho sumamufunila amnzako zabwino. Koma nsanje basi bola tiluze tonse ndipo ameneyo alephere basi. Ndapota nanu a Malawi upezeni. Better days are coming. pleeeeeeeeeeeeeeeeeeeeeease

  7. Quota system says:

    Tikamati mu dziko chuma chikuyenda bwino, anthu azipezeka ndi makobiri mu matumba mwawo. Mitengo ya dzinthu izikhala yakhazikika osati kubalansa ma buku ku capital hill, said Atcheya the other day

    1. Kanthu Ako! says:

      You want to have money in your pocket fore doing nothing?

      What an idiot.

      Fumbi ndiwe mwini.

  8. Peterson Galagaja says:

    That’s gud news to our country,may God giv u wisedom to continue with good plans
    for our better Malawi.wishing u all the best n good lucky,long live Malawi

  9. MKWAPU says:

    BIG MAN I HAVE KNOWN U NOT TELLING LIES.
    R U SURE KWACHA IS APPRECIATING?
    IF SO THUS GOOD NEWS.
    THE TRUTH WE KNOW KWACHAS REAL VALUE IS K650 PER DOLLAR

  10. ujeni says:

    You cant eliminate poverty, even in USA, UK, Canada, Australia, there is some poverty. What are people in DPP smoking, petro?

  11. Kika Kanawe says:

    I have started to doubt Goodall Gondwe’s economics though am an amateur in economics.I can see that this is propaganda.The minister better shut up!

  12. kapambwe says:

    Maybe kwacha is a moriband currency lets go the Zimbabwe way. However try to pull the socks through mining and timber export resources as well. One stitch may save ten when done in time.

  13. The Governor says:

    The kwacha seemed to stabilize because the government has borrowed some US$160 million dollars from PTA/COMESA Bank and since injected into the market. It might look rosy now but in the near future we will be back square one. This saga is similar to Treasury/MRA saga.

  14. Wanex banda says:

    Ok,kma a Malawi tawaikani patsogolo osati muzingotafuna makobidi nokha nagati ena sawafuna

  15. GCM says:

    Principle of demand and supply! This is festive season and there is a lot forex flowing in from all those based outside the confines of Malawi. Let’s wait and see if the trend is the same by mid January. Good luck Mother Malawi!

  16. Beaton Taombe says:

    Kwacha appreciating against the dollar thats better

  17. Pachalo says:

    At least we can appreciate that, if you maintain that and respect the minority from up, then we will drop the fede… Issue. Keep it up Peter, that what we want.

  18. Deputy Communication Strategist says:

    Indeed desperate times calls for desperate measures even if it means creating mountains out of anti hills! This government is so desperate for positive news that the appreciation of the kwacha couldn’t have come at a better time that they had to immediately source the services of a reporter to come out with a story!

  19. mabilinganya says:

    Amudala you r busy working hard but ur freinds are busy looting on the other side

  20. Michael says:

    What can gudo say goods are everyday going up is this appriciating ? U old man u are old enough dont cheat us, after all u dpp leaders u mean its only gudo who can be minister of finance ? U dont see other young educated people who can head this ministry instead of that old man? We are tired of his lies ,what iknow is that pita has failed, god help us

  21. MUHAMMADINO says:

    Most sugar intended for export ends in the local Market depriving the country of tax in form of VAT.Most known sugar traders have done it for long time and has led them into prosperity without government and MRA questions

  22. Chikopa says:

    Apapa wina zikumunyasa achina sembeleka, kwataine , mtambo mpaseni munthu mpata agwile ntchito inu ndigulu lomwe timanena sabata lathali kuti kuwapasa chosetele kuwasonyeza toilet kulowamo koma kunyela pa mbali kuseta ndi manja ati kuona kuchedwa, taupezani mtima dzikoli ndilanu palibenso lina president simungamuchite jadge six months wait be cool gays

  23. Proffessor says:

    Nanu a Goodold mwakalamba mukungo goofer,,paja Mukuti mukupitiliza zomwe anasiya a Phi Phi sichoncho? Mwakalamba kapumeni apo biii ma kadya kalista ndiye akutapani ndithu.

  24. Simeon says:

    But our 7 months salaries give us.

  25. Jando says:

    Also encourage malawians abroad to send money or remitances to their relations back home through banks. This method in other countries like malawi also is another means to boost forex.

  26. Moya says:

    Goodall this is like sugar coating chloroquine..everyone knows its very bitter and itchy, The economy is itching everywhere, at the courts itchy, at universities itchy, ACB itchy, NAC/CSO itchy everywhere it is and u want to convince us otherwise try another one..

  27. C says:

    Ngati pali nduna zopusa komanso zikupanga mislead Bwampini Gudo is one of them Chindere wa vindere mdala uyo nchifukwa chake mumatsekula nazo m’mimba chifukwa cha dyera, mudzafa mukuseka!

  28. Vyachalo says:

    keep it up

  29. oooooho/ says:

    ….used for intended purposes? r u sure? just ask NAC…in the way funds were ‘(mis)used for intended purposes through NIB, BEAM and Mla wa alo! if this is anything to go by, then this may just be another rhetoric on paper!

Comments are closed.