Kwacha sinks lower: Malawians burdened as they welcome 2016

Malawians are on Thursday bidding farewell to 2015 on a bad note as the kwacha continues to tumble against the dollar and inflation is increasing becoming high pushing up the cost of living.

Malawi Kwacha sinks to new low

Malawi Kwacha sinks to new low

Poverty ... a Malawi hut

Poverty … a Malawi hut

Foreign exchange market indicates the kwacha is trading at K1 000 to the British pound and K668 to the dollar.

 The kwacha’s performance is pushing prices of commodities and services up causing discomfort to Malawians, among them students studying with foreign institutions and paying their fees in foreign currency too.

An investment management and advisory firm named Nico Asset Managers, said in its economic brief the kwacha would continue depreciating in the short term as the lean season continued.

The kwacha has been depreciating rapidly in the third and fourth quarter of 2015.

The firm said the lean season had led to high demand for the U.S. dollar and that the dollar had also been strengthening hence the recent fall of the kwacha.

The firm envisioned that in the medium and long term, the kwacha was expected to depreciate due to the significant current account deficit and weak foreign direct investment inflows despite tobacco exports and improved forex reserves.

At a news conference at Sanjika Palace in Blantyre, President Peter Mutharika promised the economy would be under control by this month of December.

However, in a recent radio interview, a renowned economist at Chancellor College Professor Ben Kalua said economic fundamentals show that the economy is far away from stabilisation.

He said government’s internal borrowing, and the high inflation rate is putting the economy off balance.

Kalua doubted if Malawi would meet conditions set by the International Monetary Fund if the country is to qualify for the IMF extended credit facility that would attract donors to come back to give Malawi the much needed 40 per cent budgetary support whose absence has crippled the public health sector among key areas.

Finance minister Goodall Gondwe has assured Malawians that all will be well in 2016 though stressing it will take time for the economy to fully recover.

He was upbeat IMF will lead donors back to Malawi to resume aid in the year beginning Friday.

On the political front, Malawians are also leaving the 2015 with nolstagia following political battles between the executive arm of government led by President Mutharika on one hand and former president Joyce Banda who is in self imposed exile.

Banda is accusing the Democratic Progressive Party led government of orchestrating her arrest through connecting her to the infamous cashgate.

She said the DPP is doing all the smear in order to divert people’s attention from the critical economic situation the country is facing.

However, DPP spokesperson Francis Kasaila says the party is not meddling in cashgate issues which he said are eing handled by the director of public prosecutions and the Anti Corruption Bureau.

He said the DPP cannot lose sleep of Banda whom he said is politically finished as evidenced by coming a distant third in the 2014 general election, which he said is very unusual for a sitting head of state

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72 thoughts on “Kwacha sinks lower: Malawians burdened as they welcome 2016”

  1. bamusi says:

    Mbuzi

  2. Rodgerr Kazembe says:

    That is the of leaders without vision

  3. mbwiyache says:

    SIGNS OF THE TIMES, NO ECONOMY IN THE WORLD IS 100% GOOD. ASK THE RUSSIANS, AMERICANS, BRITONS EVERYWHERE. PLEASE KEEP ON READING AND STUDYING WORLD’S MAJOR ECONOMIES THINGS ARE NOT WORKING AS EXPECTED. THANK GOD THAT MALAWI IS A PEACEFUL NATION, NO REBEL GROUPS,GANGSTERS. TOGETHER WE CAN GET RID OF POVERTY NOT THE PRESIDENT HIMSELF. OSAMANGODZUDZULA HEAD OF STATE AMALAWI TELL HIM NGATI NAYENSO NDI MUNTHU

  4. munyenyembe says:

    Even south Africa rand is failling is it Peter munthalika who us ruling here????

  5. Balamanthu says:

    Upon checking the National Bank website, I almost fell off my chair when i saw that the monthly rural inflation rate is surpassing that in urban areas.Zoona?Koma ikakwana nthawi yamavoti-kumawanamiza wanthu ndi ma MK50!

  6. Balamanthu says:

    Umbuli ndi chinthu chozunza.The comments made by number 31 make alot of sense.Economics is such a subject when you tell lies, the fundamentals prove you otherwise.Thats what is happening to our country.Bingus economics of fixed rate is stone age economics which put us all into alot of sheet and most of us have already forgotten.

    There are no signs that the Kwacha will stabilize?What will make it stable?Which economic fundamentals and in what setting?Imeneyi ifika MK1000 to the dollar before February 15,2016.I bet you.What do we export apart from fodya whose quality is mixed and ziboliboli?We dont control the Chinese and amwenye to externalize our foreign exchange in very devious ways?

    God is angry with us and particulary with this government chifukwa chobela mavoti.God has his own ways of squaring up with his people for injustices committed.It will be worse when we come to mid 2016 and more people will die from lack of medication because government will not have alot of money to help with either with food or medication.

    The fiscal policies that the Minister of Finance runs are not in tandem with the monetary policies of the Central Bank.Even if they were, how would the underlying fundamentals support the same?

    And look at the Cabinet of cabals.Who amongst them has sense to rescue us from such people from one village using different names kubela mavoti?

  7. mbodzole says:

    my salary gets lower and lower every day while prices gets high and high

  8. Frazer Gomani says:

    We are now leaving in difficult moment as God is angry of gay marriages.Which leader we will have to stabilise kwacha ?.Its only Bingu and Malawi will cry for Bingu so long.

  9. kambindingu "hard & low" says:

    We are leaving in a failed state ruled by a bunch of myopic politicians without any vision for the development this country.

  10. pluto says:

    Owerengawe khala maso

  11. Gerald Nditani says:

    Koma amalawi tiziona eeee!

  12. bamusi says:

    Consequences of Rigging Elections. Rigg also the economy, Food and wat have U. Simunati muona mbonawona za kipingo. Bolanso Amayi.

  13. McGoodson Ngoma says:

    foolish government

  14. Nazizwa says:

    Comment number 51! you are wrong because the Minister of Finance right now is Goodal Gondwe………….is he chewa as you allege? by the way Chewas come from Central Region and the current government is from the South where Lomwes, yaos and Mangánjas are in abundance. ALL people from Central to South Regions are not Chewas, just like not all from the North are TUMBUKA. by the way a lot of Cushgate suspects are Northerners. I can not say Tumbukas but Northerners is more appropriate.

  15. kingsley magombo says:

    This issue here the late Wamutharika real economist had to reveal his vision on how this would affect us negatively in future but the same fools of opposition they made nasty noise without having a clue and politicise the issue. Stop castgating some one on tribal bases cause Malawi is for us all, being lomwe, ngoni or tumbuka its no concern with these matters ndi umbuli chabe umenwu, where is future for us youth in this devastated society?

  16. Blunt Truth says:

    We Malawians blame Peter Mutharika. He is failing us. He has made everything expensive. Let him resign.

  17. kingsley magombo says:

    The issue here the late Wamutharika the real economist had real vision on how this would have negative impact in our future, the same fools opposition they made nasty noise without having a clue, remember also that this issue is not concern lomwe, ngoni or tumbukas. Stop castgating one another but hence bring forward solutions otherwise Malawi is doomed, how do you see the future of us youth inside this devastated society?

  18. CHINDIMBA CHA AYAO says:

    Likakuona litsiro mvula siikata:

    Chelsea pakwawo

  19. william says:

    Kwacha is falling because of Chuka has made a deal with exporters( amzungu ndaki limbe leaf, JTI,Africa Leaf,Mota engil) these thugs buy tobacco from locall farmers and pay kwacha and then they export the tobacco in there name in dollars. So in the past these so called mzungu exporters were to change 40% of there dollar in kwacha immediately and the rest within 3 months. Now our Leserve bank governor Chuka has changed that policy from April 2015, and allowed the Mzungu exporters to keep 100% of the exports. Now these mzungus are sending this money to there countries and whatever little they change they force the banks to pay them higher therefore devaluing the kwacha everyday. Our exports are not beniffitiing Malawians it is for the mzungus what a shame. Chuka this is RBMGATE

  20. Wadyera says:

    Tell me who liberised the kwacha to be floating? Is it DPP or the Azungu andituma government? DPP has always said floating the kwacha will have a negative impact in the masses of the common person be it in town or in the village. But some of you in the opposition you were adamant and kept on pushing the then DPP led government to liberise it. That time a dollar was being exchanged at K149 and a pound was being exchanged at K650-K700 kwacha. Now I find that PP has done a lot of harm to Malawians economically.

  21. matako says:

    This is a government headed by pumpkins.

  22. Let Us Pray says:

    The Chewas are just noisy and hateful about the tumbukas. Here you are now total failures in both managing and Administering the Country. A Tumbuka who are the real God given Managers and Adminitrators ali phee!!!! kungokuwonelerani. Mwagwa nayo. Kikikikiki

  23. MSANA WA PETURO says:

    Vindere vingachite chani? Vakanika basi. Ntchito yawo ndi dyera ndi tsankho basi. Let us just pray for God’s intervention!

  24. Cashgate1 says:

    Mayo ine mpakana MK1000 to Pound? ohoh! Kenako alimi akayamba kugulitsa fodya muziti pano kwacha yayamba kupeza mphamvu ndi Dollar, kuli kubela alimi. At the moment farmers are buying farm inputs at a higher price only to realize losses after selling tobacco. Koma Malawi uyu with its clueless leaders?

  25. Nyasimmaso says:

    The government is running on Auto pilot mode. A president anagona kalekale.

  26. This guy is different from Bingu . That man was the man to help Malawi .

  27. Gerald mapanga phiri says:

    That is one of the fruits of democracy when it hasn’t tamed well

  28. kambwali says:

    zisilu inu cash gate inatha klekale pano muzinamiza anthu kuti chuma sichikuyenda chifukwa cha cash gate. Chaka chinoiserie moti tili be budget chifukwa cha cash gate? chauta akulangeni

  29. bwanankubwa says:

    koma ulamuliro ndye wativutapo apa basi. the leadership that does not control inflation is not different from that of pp under a woman. If Bingu would come back to life he could trush the current unvisionary leadership.

  30. Fartgate says:

    Shaaaaaaaa!!!!! Mayo Mayo Mayo.

  31. best advise says:

    expect prices to continue goin up

  32. Chigawaneni says:

    Wovutika ndife anthu wamba amene tidakuyikani pa maudindo wonona. Mulungu akudziwa pamene pali vuto kuti mavuto wonsewa azikhalako. Ndikupempha Mulungu mulowelerepo, anthu anu tikuvutika chifukwa cha anthu wochepa.

  33. Galu says:

    It is true that Malawians anazolowela Maputo. Tiyeni tizingokhala phwi mpaka tife at the ruthless administration of Peter who can not even point at his village in Thyolo. The time is ripe. The useless and selfish CSOs must also go coz they are betraying us.

  34. tembusha says:

    Hahaha very funny DPP have lost direction musalimbane ndi JB… APM ingovomelezani kuti zakuvutani basi !!!!

  35. chiwa chimo says:

    The floating system is nt favouring us, pliz let it be fixed for this period.

  36. anadimba says:

    abale zitha bwanji zimenezi. Bola anzathu ku sanjikako aGertu mu ngomva odi ndi moni.

  37. MHELIWA says:

    NOBODY CARES !!

    NOBODY CARES !!

    SURE ! SURE ??

  38. Mavuto pa Nyasaland. luckily they don’t feel De heat but we feel the mkoka ngolo’s

  39. John. M. says:

    It’s part of life in Nyasaland.

  40. zayakunkhongo says:

    Goodall u r useless

  41. Angel of Doom says:

    Nothing surprising there.

    Instead of being productive, Malawians are very busy, talking about Gay issues, Joyce Banda, Information Bill, etc, none of which have short-term or long-term benefit to Malawi.

    I understand information is power, but the sort of information Malawians are wasting time making noise about will not empower anyone, they want to know if Bingu was stealing, we already know he was, then what? Bring him from the grave and flog him?

    Joyce Banda lost the election, what matters in elections is swearing in, you can not change that, so why waste time talking about what can not be changed. What we should be talking about is fine tuning the system, no one talks about that, so come 2019, same problem and the talking begins again.

    We should be talking about things that will change our future, thing that will help the Kwacha, Persecuting Gays will certainly not help the Kwacha, waiting for government to do everything for us even wiping our back sides will not help the Kwacha.

    Even people that are able sit phwii waiting for subsidies and arguing for free education.

    End result, Boma silikutithandiza, how many people can be personally helped by a government?

  42. Mayooo! Mpaka 800 kwa dollar .ngozi yayikulu komaso kuba akubabe sangasiye kuti apoze Kaye zilonda za cashgate?mavuto kwathu kunmalawi sukulu ayambaso kulipilitsa mbuli zichulukenso mayo mayo .pitala ameneyu atipweteka bwanji.

  43. Bob says:

    Malawi tsopano

  44. mbanga says:

    onse munavotela APM u r to blame.

  45. WUCHINDELE NKHUKHUMBA YAYI says:

    Last time I checked on the exchange rate was a week ago and $ was at k612 and £ at k912.If this is the rate the kwacha is falling,am afraid we are many steps forward in the wrong direction.Am short of word. It doesn’t need an economist to describe the status.We are feeling the heat and with each passing day,it becomes hotter and hotter.Where is the leadership to make sound interventions?

  46. haward says:

    Kodi mesa a Dpp amati by december zinthu ziyamba kuyanda bwino ndipo Gondwe ankati tisekerera by january

  47. Misheck sibande kaitano says:

    PETER UNGOTULA PANSI UDINDO CHIFUKWA ZAKUKANIKA ,NZERU ZANKALASI SIZA UTSOGOLERI AI .BASI WALEPHELA

  48. Mwakipiki says:

    I hope we don’t get to where Zimbabwe did. Cry my beloved country

  49. Kaligondo says:

    Boma ili lalephera mpaka usd k800

  50. jozee says:

    koma yaaa ali mwana agwiritse

  51. ngongoliwa says:

    Iwe katsaira, do forensic ya 557 bn. Mukuopa chani Jb anapanga yache.
    Kwacha ndimeneyi, goodall ndiuyo, too old to think anymore. Fisp ndi iyo, fetereza kulibe maka kumkuno kuno. YKumwera mwaapatsa koma mvula yukokora mulira.

  52. Koma ????? says:

    DIDNT GOODAL SAY MALAWIANS WILL BE CLAPPING HANDS FOR THE GOVT BY THE END OF THE YEAR? HERE WE ARE CLAPPING HANDS

  53. Zenko says:

    No display

  54. Wapamtima says:

    dollarise Malawi plz

  55. Anthu akuda says:

    Kuyendetsa boma simasewera zimafuna utsogoleri wokhala ndikuthekera osati mphwephwa. Not leaders who visibly clueless! Unfortunately our tribal inclination blindfolds us from seeing the reality.

  56. wachinyamata says:

    What are those conditions set by the International monetory fund?
    Are they asking for homosexuality?
    Are they asking for drums of blood
    For the people to be killed or else
    To legalise accidents for them to keep on collecting blood?
    Should we say they are asking for human being organs for their rituals?or else to satisfy their demons or ghosts to keep on working for them?
    Are they asking for the distruction of some temples?
    Or what do they really demand us to fulfill inorder for to come back?

  57. Kent says:

    Kuli gutuli

  58. Patriot says:

    Can someone ask Goodall and APM how they plan to stabilize the economy. What measures would they employ at this lean period to arrest the current economic malaise? Listening to both Goodall and APM one sees completely clueless old men visibly stuck in ancient and archaic, therefore irrelevant economic theories and a Victorian law professor, respectively. It ought to be impressed on our politicians that one doesn’t just wish things to change – one needs to employ deliberate ways of achieving the intended goals. Stop the campaign scrap and show us leadership!

  59. Concerned Citizen says:

    Why do you paint a picture as of all is well when everything is falling apart. It would help of we were given a true picture of the state of our nation. Then would all know what to do to assist or expect.

  60. Rasta says:

    Ofcoz everyone who understands Malawian Economy this is a normal pattern kwacha mostly drops against the dollar at this time of the year when its off-season after all last season everyone living in Malawi knows we had poor harvests as we are an Agricultural based economy.And you Nyasa Times u dont like Peter Mutharika and the DPP its fine,but projecting Malawi in such a negative light as if every Malawian is living in such grass hut that is total exgeration.The question is who r u targeting with such a report?definately not Malawians.’THE LOVE OF MONEY IS THE ROOT OF ALL EVIL’.

  61. wachinyamata says:

    The economy soon will get recovered
    The economy soon will get recovered
    The economy soon will get recovered
    Za chibwana basi Kodi muku ona Ngati
    Mukulankhula ndi Ana eti?

  62. kabotolokamo says:

    Ho! you thought when you steal things you will be looked in as good , waste of time , No one trust these guys and they are going to put us in more trouble.You are done guys , you better change now , its not too late .

  63. Atusaye says:

    God may you forgive us so that we see change

  64. Norman Chilewani says:

    Eye Joyce Banda osangobwera Ku mudzikuno bwanji? Akuwopachiyani? Munthu amamangidwa popanda chifukwa. The guilty are afraid

  65. Norman Chilewani says:

    Times are hard ambuye even if Joyce Banda was the president. Cash gate inatimaliza

  66. MHELIWA says:

    NOBODY CARES

    ABSOLUTELY !!!!

  67. The Analyst says:

    O……………………………………………………………………………………………………………………………..O………………………………………………………………………………..O
    Sadly, the Kwacha’s tumble is less of a mirror-image of economic fundamentals and more of a galaxy of greedy banking system possessed by a demonic lustful pursuit of obscenely abnormal profits hence larger-than-life bonuses, coupled with inefficient regulation.

    . . . Let the farmer get proceeds from his/her long work in the tobacco field, the Kwacha is all-over sudden stronger vis-a’-vis trading-basket currencies; not reflecting the supply and demand imbalance but because the bank wants to rob the farmer of his dollars. Kulakwa!
    . . . Now let the farmer and other importers buy dollars from the banks, the Kwacha is all-over sudden the worst performing currency. Kuba tu uku!

    And what does the regulator do? Nothing! Yet the Kwacha fall is impacting negatively on inflation; the very vice which the central bank is trying to arrest using a wrong tool of high interest rates yet the exchange rate channel is what our inflation largely comes from. And all economists at the central bank and the ministry of finance and eco. devt know this.

    I wish the regulator wasn’t just obsessed with the holistic implementation of the Basel framework and forget the nitty-gritty consumer and investor protection aspect of regulation. Otherwise, people are suffering with this clear display of incompetence!
    O………………………………………………………………………………………………………………………………..O…………………………………………………………………………O

  68. Malilime says:

    Koma pamenepa tilimba?agwanalo boma koma kudziwa kuba ndalama ndi mavote

  69. kamowa John says:

    Foolish government. The kwacha wil never stabalize. There are no signs pointing that way. When are you dying. For Malawi, we believe things only gets better when one (the firt citizen) bids farewel and goes to heaven or hell.

  70. Kumamvetsa says:

    We were assured by Hon. Gondwe that we’ll be clapping hands come December!!

  71. Mlomwe original says:

    Tafa basi

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