Malawi Kwacha depreciates, trading at K615/$

The advisory firm, Nico Assets Managers has said in its report that Malawi Kwacha has depreciated by 28.5 percent compared to a 14.5 annual depreciation rate recorded during the same period last year.

Kwacha depreciate

Malawi Kwacha under severe pressure

When exchanging US Dollars for Malawi Kwachas (MK), bring a suitcase

When exchanging US Dollars for Malawi Kwachas (MK), bring a suitcase

And the local unit will continue to depreciate as the lean season advances, the report said and in view of excess demand for dollars on the parallel market, according to foreign currency parallel market dealer.

According to Reserve Bank of Malawi (RBM), the Kwacha shed 2.3 percent against the dollar to trade at K615.79 as at December 3 2015 from a rate of K602.07 recorded on November 27 2015 in authorised dealer banks (ADBs).

The local unit has also sharply weakened against the British pound during the same period, to sell at K928.06 from K902.24.

The situation is also the same against the South Africa rand and euro, as the local unit has ceded 2.4 percent and 2.5 percent to trade at K43.13 from K42.14 and K654.52 from K638.79, respectively.

The loss in the kwacha value against major international trading currencies has mainly been attributed to a combination of a strengthening US dollar and speculation in the run up to the lean season. The situation has been worsened by low revenue from tobacco and lack of donor aid.

“The exchange rate is expected to continue depreciating in the short term as the lean season continues. This could be mitigated if the authorities sell forex to the private sector,” suggests the advisory firm in the report.

Economic experts have projected that the fall of the kwacha will result into the rising price of goods and service. And this will put pressure of workers asking for higher wages leading to more dreaded demonstrations.

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peeping lizard
Guest

kodi bwanji timangoti goodal gondwe minister of finance. from bingu to peter.palibe ena anzeru oziwazachuma?

sam
Guest
We need an economists who has worked in trouble times, goodall was FM during Bingu when malawi was dong well, we had debt written off, but a true economists performs during hard times, Goodall and Chuka combination is not working people have lost faith in kwacha and if action is not taken soon then farmers, industries will go bankrupt as they cannot sustain the exchange rate losses, which will result in job losses. Dont blame everything on cashgate that is the past we need solutions now, if you have run out of ideas make space for otehrs to have a… Read more »
Albert
Guest

Kulira kulipo abale anga maliro akatuluka atuluka munyumba why did you put the same blood in power. Means WA chule ndi WA chule basi

Albert
Guest

Maliro akatuluka munyumba atuluka why did you vote for the same blood.kulira kulipo,sorry for my malawi

California King
Guest

Peter Santa Muthalika on the drive seat

ngongoliwa
Guest

STOP IMPORTATION OF LUXURY CARS FROM JSPAN UNTIL ECONOMY PIKS UP, ZIMBABWE ONCE DID IT.

Che Wanimiliyoni
Guest

Stop worrying about Kwacha depreciation for nothing will change even if to reaches K2000. Were we not there when 1 Dollar was K4 in 1994 and has anything changed or hav we died? Let us pray for rains not these virtual threats.

Sapitwa
Guest

Not only Malawi. Check the currency depreciations in countries in the SADC region. You will be shocked. The Rand is @R16.04 against the Dollar from R14.00 just in two days.
Sometimes our negative actions and comments affect the currency to depreciate than we think.

Dwambazi
Guest

Still waiting to clap hands for this administration, Paja anati December kikikikikikikiki

Mlauzi
Guest

No 6, forget the Nsanje port and concentrate on doable projects. That project has some serious sovereignty and ecological challenges. Mozambique sikulola. Engage donors on the Sena – Beira railway line instead.

Komanso apatu ndiye sizikuyenda, Ng`ombe yaimuna ija bwanji?

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