Kwacha sinks to new lows: Brace for hard times, Malawians warned

Malawians should brace themselves for hard times as the local currency Kwacha  continues to weaken further against the US dollar with the middle rate falling to about K440 compared to about K430.

Kwacha

Kwacha

According to Consumer Association of Malawi (Cama) executive director John Kapito, this will see a number of goods increase in prices .

The Kwacha has been facing renewed pressure and government said it needed donor support to keep the local currency from dropping into red zone territory.

Analysts are projecting that the local unit may hit K525 to the dollar by December this current average selling price of K460.

Kapito said the fall of the kwacha has serious implications for local consumers and drastic implications for the country.

“Due to the fall of the kwacha, there will certainly be price increases in basic goods and services. The cost of living will be unbearable while employees will be asking for higher wages. This is not a situation to watch, someone has to tell us what exactly is happening,” said Kapito in comments published by The Nation.

Ministry of Finance, Economic Planning and Development spokesperson Nations Msowoyao said they are working on some projects which may trigger disbursements.

“We are expecting aid from the European Union [EU], the World Bank and the African Development Bank towards the end of this financial year,” said Msowoya.

Reserve Bank of Malawi Governor Charles Chuka said recently that there should be no cause for panick with the continue fall of the Kwacha.

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40 thoughts on “Kwacha sinks to new lows: Brace for hard times, Malawians warned”

  1. Chibiliti says:

    Southerners contribute little to the economy of Malawi. It is tobacco from the Central Region and Northern region that is making the economy of Malawi. That is why we want a federal system of government. We cannot continue feeding useless people.

  2. ben says:

    Chuka should be the worst governor in the history of all governors in the world, no country has lost so much value of its currency but we have done it under Chukas watch, and he has the courage to say no need to panick, you are supposed to warn these greedy commercial bank traders as they are fueling inflation which is disastrous for poor Malawians.

    How can you allow greedy exporters like tobacco companies, NGO to keep 80% of there export proceeds in Dollars they are taking advantage, the law should be reversed all export proceeds to be immediately converted into MK, as these selfish companies are hoarding the forex.

    Under these laws Banks will continue making millions and NGO, who are supposed to help poor Malawians but it seems we are being looted

  3. MADA says:

    AKULU AKULU MUTIPWETEKETSA SIZIKUYENDATU APA !! MAYOOOOOOO !!!!!!!!!

  4. I MISS MY WIFE HAVE YOU SEEN HER?
    LETS AVOID HIV AND AIDS

  5. Munthu wa Mulungu says:

    Lawyer sangathandize kukweza chuma cha dziko. Ndipo amalawi sitinati. Tiona zakuda ndithu.

  6. Malawian Patriot says:

    Lack of knowledge about trade. Money is a thank you and what you need are things for everyday use. These are made by people when they are organised. Please Malawi organize yourselves, create a common vision for production of goods and services that you need and go do it. This is the only way. A promise can be broken (Reserve Bank Promises to pay on demand the sum of K1000 etc, no meaning in this if you can see and read what I mean)/ Knowledge and change of mind set is urgently needed in Malawi.

  7. Kanyimbi says:

    Ku Malawi Chilungamo chinatha. Mwina Yesu akazabwelanso.

  8. Nyambitoni says:

    Chukeconomics “No cause for alarm”

  9. nyani pa stearing ku malawi

  10. Nations Msowoya should do better than telling us that they are waiting for donor disbursements thats nonsense! What we want is an economy that ticks with or without donors. We are a 50 year old nation for christ sake.

  11. Alungwana says:

    The choice of the 36.% Do not regrett for it is your choice. And I tend to wonder why Chuka says no need to panic, are you serious Mr governor?

    1. Kanyimbi says:

      sizikugwilizana izi.

  12. Those people who are involved with cashgate are the ones bringing problems but judicially is givng them 3 year jell terms and yet they are killing alot of malawians,u dont see that when they come out they will still leave expensive lives?poor malawians will still suffer but those will continue using billions they squander from government.As things are as it is we demant for truth and punish them accordingly.

  13. Aimed At says:

    I am not surprised that this is what is happening. We are a greedy lot. What happens when salaries in government go up without due respect? From the analysis I have on the current revision of salaries of civil servants one would conclude that the government has a lot of money, though it has very selective and greedy tendancies. I could not believe the outcome of my analysis in terms of how the government thinks about its masses! Why do I say so? Infact I also asked myself, did this revision get the blessing of our learned and loving president, who has the masses at heart? Just some few observations:
    1. there is a very unjustified increase in salaries from those below P4 with those above. What makes that big difference between P5 and P4 to justify the big salary gap? The citizens are owed an explaination for that. Some of the people at that grade were just appointed and worse-still some even failed the P5 interviews. What message are you sending to the general civil service?

    2. there was a rise in leave grant. Who need leave grant more, between a PS who has fuel allocation which he can use to go to his parents at anytime and also gets a very hefty salary? Lets be lialistic and human.

    3. I can only think of 3 options – 1). General strike by those bellow P4, 2) boot out all the Civil service negotiating team because they are greedy, 3) withdrawal of the circular and reviewing the salaries to reflect a government for ALL; and that wants to promote efficiency in civil service,

    4. Surely it is these disparities that makes government less inefficient —- GREED, and no fear of GOD. The spirits of the masses may haunt you for good… I mean those concerned

    If I were a civil servant I was going to say…. it is time to act and get lid of some of these satanic behaviour. I am just thinking aroud! I mean aroud!

    1. Is that so says:

      But your arguments and the emotions attached to them have betrayed your identity. You are a Civil Servant below the gade of P4 and I can bet you are at P5

  14. DPP a party to the nation worry not

  15. Najere says:

    Ok mutiuza nanga ife tidziti chani poti a Tchukawa nga cashgate akangotulutsa ndalama ku ceiling basi tidzaone zochita zibwerere mu circulation. pompano mumva a printer 5pin kuli kugwa kwa economy. Aid akumaneni munye nkale mwayamba kuba. Zitsiru

  16. baba oniwa says:

    Abale anga Zungu ndi zungu ponda Mitsinje palibepo nyanja —–Alomwe mungatani -fusani Britain inaneneratu kuti amene abele mavoti ali mmadzi ndi zimenezo amalawi tinya , tikuwa tivutika kwa mbiri

  17. Nihoriya says:

    Malawians are reaping what they sow which is DPP which has a bad record of managing crises. Peter failed in all ministries that he worked in. But some voters decided to run an experient in this laboratary called Malawi. Unfortunately the people who are to be hurt are the same voters that sent Peter to experient on them. See now UDF is a bedmate. Two parties drawing money to fund party functionaries& functions. Teachers, Policemen/women & sundry will dance to the tune of hardship worse still aphunzitsi ndi apolisi amakhala ndi ana ambiri ngati akagulisapo. Sorry boma ili ndi la Professor osati ongopatsidwa but real one osaganizira mbuli ngati inu koma ophunzira kuyambira pa Degree

  18. Objective no party affiliation says:

    APM is VERY educated and well travelled, Kwacha siingagwe. Things are VERY OK!!!!!!! Chiri kwa mzako umati, ‘chigwire nyanga’. I would like to hear Akweni speak

  19. Newborn. says:

    No wonder…

  20. Black Market says:

    Cashgate effects, not surprising at all. The whole country and everyone will now feel the badness of Cashgate and yet you give these thieves 3 yrs, corrupt and childish Judiciary. Do you think this currency madness will be corrected and regain the Kamuzu glory with this childish approach on thieves and exploiters?

  21. Daniel Phiri says:

    President koma JB awawa satiyhandiza.

  22. eye eye says:

    No cause for panic BUT JUST SMILE? is it Chuka?

  23. Tilipo says:

    With JB kwacha was more stable atleast. Do not take us back to the days of Bingu please. Do something or find out from JB what was her secret. Let Malawians benefit. Issues of kwacha going down hurt us badly economically just like any epidemic disease.
    Good luck for our safety.

  24. John says:

    And yet the MPs are offered millions of kwachas in loans half of which will be paid by a certain poor farmer in the village. Such a clever gvt, dont you think?

  25. Tengupenya says:

    Iyo kwacha ndi ndalama ya nzeru kwabasi. ifuna kupeza mtengo wake woyenera pa market ya ndalama. Tsopanonso awa a cashgate omwe kaya amapurinta ndalama kaya amachita bwanji akayamba kukhuthula ndalama zawozo mu market, kwacha iyi yitsikanso mwamvumbi. Tikonzekere kwacha kufika pa K 780 to K800 pa dollar ya America imodzi pasanafike pa 15 January 2015. Kapena a boma alowererapo ndikuyinjata pa mtengo wina wake?

  26. Sibongire says:

    Chuka is a liar!…..we are not idiots you know!…..This Dpp Government by MEC is a disgrace…..thugs that are in it for self enrichment!

  27. chefourpence says:

    Nanu a Kapito! Who should tell you somethung? Don’t be an alarmist! Thats emotive economics abwana. Keep kool

  28. MaiMai says:

    Tchuka is another useless Lomwe bastard..does he even understand basic economic s? Dont panic due tfall of kwacha??? RBM governor ameneyo??????

    Mwadzuka bwanji a Kapito? Chibanzi chinakugonesani tulo tofa nato. .During jb you were always attacking now mchila mwabindila ndimasikono a APM.

  29. Njolopingo says:

    no cause for panic, are you telling us trueth?

  30. nkunthamasese says:

    We would like to urge Total LandCare (TLC) to revise its employees salaries as quickly as possible preferrably by 60% as the cost of living has gone up. Most Organizations including Gov’t have done so. Pliz make your employees happy. Don’t wait for strikes.

  31. The Truthful One from the West says:

    This evokes memories of how the DPP government brought the Malawi economy to its knees by April 2012. Does the DPP govt have a plan to deal with this very serious negative development? If so let it come out and tell Malawians.

  32. Ndaonela momwemo mwambi wa agulugufe! Musova

  33. ES4E says:

    No cause for panic? Tchuka? What are u telling Malawians? Substantiate ur comfort message with statistics

  34. Abonzi says:

    As a believer I just know my Lord’s coming is very close. Prepare yourselves for the end is near, these problems will continue and never end.

  35. Dada says:

    Mr Tchuka please !!!!!

  36. nkhedu says:

    ok musovatu apa?osamangoti mffweee kumayankhula zosamvekazo

  37. kanthu says:

    Why so in Malawi?

  38. Gunz says:

    I think the reporters should read what happened in Zambia, Kenya, Uganda, TZ for them to appreciate the healing process of the country’s economy. These countries went through more than this in the process to their current positions. Without that their balance of payments wouldn’t be corrected. Export sector wouldn’t benefit. What you need to concentrate as reporters is how the country will undergo import substitution, encourage exports in the medium to long term. Ask officials on this and report. There is nothing unexpected on the movement of the exchange rate, we all knew the exchange rate could not be artificially pegged nor defended. If we are to move forward, hold people responsible for what they are not doing to put in measures for export diversification and deepening.

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