Malawi Kwacha falls to ‘weakest level ever’

The Malawi Kwacha has weakened sharply to a record low against the dollar  by 6.4 percent since the start of the year, Finance Minister Goodall Gondwe has confirmed the slump.

Malawi Kwacha falls to record low

Malawi Kwacha falls to record low

Malawi Kwacha falls to 'weakest level ever'

Malawi Kwacha falls to ‘weakest level ever’

The free fall of the local currency is the weakest level ever against the greenback and inflation is increasing becoming high pushing up the cost of living.

Foreign exchange market indicates the kwacha is trading at K1 000 to the British pound and K768 to the dollar.

Finance minister Gondwe conceded that the Kwacha fall has “worsened”.

He however assured Malawians that all will be well mid this year though stressing it will take time for the economy to fully recover.

Gondwe was upbeat IMF will lead donors back to Malawi to resume aid in the year.

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 declines compound the troubles of an economy hit hard by a downturn in commodity prices and its inability to put into place what economists say are necessary revival strategy.

“We are a country in crisis,” commented opposition politician and parliamentarian Kamlepo Kalua.

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32 thoughts on “Malawi Kwacha falls to ‘weakest level ever’”

  1. Dwambazi says:

    Mr Gondwe told the nation in May-June 2015 that the economy would be better in Dec 2015 and that we all would be clapping hands for Mathanyula and his clueless administration , I haven’t seen a reason to clap hands yet. I have never seen Malai in such a dire situation

  2. prence says:

    ino sinthawi yolozana zala!! tingogwada pansi ndikuyang’ana kwa namalenga kut atithangate basi,,,,coz votoli sangalithe munthu mmozi!!!! god bless nyasaland worm haert of africa MALAWI!!!

  3. Theoj says:

    How can we survive when we hav been sorrounded by selfish people, they eat and drink while others are dying of hunger. So soon the judgement will follow.

  4. shosholoza says:

    Malawi will be poor so long our political style never change. Either Malawi should adopt federal type of government or try a northerner to be a leader of the country. Otherwise we will keep on crying with the same people in power, I doubt if there can be any change. In federal system state will be competing no state will like to remain behind. Time has come for Malawians to think beyond tribal lines.

  5. kk says:

    No4 kikkkkkkkk kwacha yagwa apulezidenti kugwaso? kikkikkkkk!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  6. Jijo says:

    Lets just join hands and move forwad

  7. B says:

    Its time we open our eyes before it is too late….lets starts using the dollar or else things are going to be worse than this..this has nothing to do with the finance minister..wake up Malawi!

  8. Damus says:

    If we can’t change the way we think we can’t change the way we live.
    We can be slaves and ne free if our vision is greater than our chains.

  9. Fraser Moyo says:

    If you say this problem is all over the world, shut up your month, this old finance minister Mr GG must resign or Mr APM fire him, R, Juma must take over the position no matter which party and area he come from.

  10. Tim says:

    Malawi is a useless shit hole of an Evil Nation…It deserves to be poor..Churches is evil..Tribalism is evil..Corrupt Government is evil…The whole nasty society is evil…
    Heart attack in high office soon just like before

  11. paul says:

    When we plant kwacha is depreciating we buy farm inputs at higher price, when we sell produce the kwacha starts appreciating. Why cat we have a fix kwacha. Eversince Chuka akhala become governor we have only had kwacha weekness, i dont understand after performing so poorly on inflation and kwacha depreciation he is still there, what will it take APM to fire him, kwacha to reach 1000 and inflation to hit 30%.

  12. innocent says:

    Let’s stop pointing finger each other this problem its all over africa.for example SA now its also facing the same problem.let’s be unite to build our poorest nyasaland in the world.

  13. Matako says:

    Malawi is running without a Government i think. AP, Soulos you guys are a bunch of failures , but anyways lets keep burning in Flames tinawasankha tokha

  14. jerome T. says:

    nd yet we are cryin 2 God, lord help us lord help us.. U’re fogetin kuti mukupha anthu amzanu kutenga mafupa, kukumba manda in the name of richness, God should not help us only untill we change our animal hearts…if that nt being done let the worst hit this nation that we Cry very very Loud…

  15. henry says:

    Kwacha is depreciating mercilessly because of a blunder by Chuka, He made a deal which no previous governor in malaiwi has made, he allowed tobacco exporters, not malawians but amzungu Limbe leaf, africa leaf, JTI, to keep dollars in the account in full 100%. These companies just process tobacco as they buy from indigineuos Malawians, and then export and hoard the dollars, then sell to banks at exhorbitant price, creating scarcity. So Amzumgu is benefitting for the sweat of Malawian farmers. During time of Kamuzu, Muluzi, Bingu,JB it has always been exporters are only allowed to keep 60% rest they have to convert to kwacha immediately. BUt our genius governor changed that and allowed these Zungu companies to keeo 100%. SO the fact is Chuka hates the Malawi kwacha as even a schoolboy will tell you this policy will lead to excessive kwacha depreciation, as this was introduced in April 2015 and ever since kwacha has nosedived.

  16. Almon Kamanga says:

    Please Mr. President stop the Malata and Fertilizer subsidies as these promote laziness , Malawi is a poor country and implementing these two schemes concurrently could not assist in the growth of the econmomy. If your are working to appease your manifesto then the country will not grow economically. be a hearing president but not a deaf government.

  17. Nebuchadnezzar says:

    Tsono paja kwacha imakhazikika msika wafodya ukatsekulidwa(alimi mukamawabera fodya wawo) ndiye choti tidziwe ndichakuti kwacha imeneyi ipitilira kugwa chifukwa chaka chino ndiye fodya wakanika chifukwa cha ng’amba.

  18. The Analyst says:

    O…………………………………………………………………………………………………………………………………..,……………………………………………………………………………………………..O
    Ha! Kamlepo shall never cease to amaze some of us. So ours is a country in a crisis? Ha! You see, if the only world you have known in your life is the corner of the house you were born and grew up in
    . . . you see a hill and call it a mountain . . .
    . . . you see a lizard and call it a crocodile . . .
    . . . you see a cut fish (mulamba) and call it an anaconda snake . . .
    . . . you see your own shadow and think that someone is following you . . .
    . . . et cetera et cetera . . .

    If you cared to refuse to close your mind, you would realise that Malawi is in no crisis but Syria is and Zimbabwe was (before dollarisation). Many African countries’ currencies are worth less, like Ugandan Shilling = 3500 per dollar, Tanzanian Shilling = 2000 per dollar etc, but are never in crises.
    . . . If you think am lying, just watch coz you are to see worse. Trust me, “Winter is coming.” – Game of Thrones. Thus, “If you have tears, prepare to shed them now” – William Shakespeare; “Winter is coming.” And its no laughing matter.
    ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
    Nonetheless, a crisis is a process; not something you just wake up to or realise you are in. Looking around, tale-tell signs are all laid bare for everyone with eyes to see that if Malawi continues to run on auto-pilot mode; we are on a sure path to embracing a crisis with open arms.
    . . . Sadly, the central bank is finding the fall of the Kwacha as a normal process of price discover (of the true value of the currency) and hope that sooner or later, the equilibrium will be reached.
    . . . But if you ask them how soon will this price be discovered, the RBM has no answer. If you ask them what the true value of the Kwacha is if they think the current one is not; the RBM has no answer, either. You want something, but you don’t know what or when it is? Ha! Laughable!
    . . . Whatever the central bank wants; it is forgetting that the rate at which this process (of price discover) is being done is not normal hence the need to do something.
    . . . What hurts is not necessarily the value at which a currency trades (e.g. 768 or 1000 or 2000 to the Dollar) but the volatility; which brings uncertainty (risk). And this uncertainty is not so good a concept to investors.
    O………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..O

  19. james Banda says:

    I am crying for my contributory pension. Is the money I have contributed so far since 2010 losing value as well? Mayo ine!!!!

  20. peter phiri says:

    Where is the sweet malawi going. Each and everything is change and our beautiful kwacha has again fall. LORD be with Malawi so that things should back to normal

  21. judah says:

    malawians keeping snakes in the house

  22. khal drogo says:

    “you will clap hands by january 2016.”

    “we are cooking something nice fo 2016.”

    mulomowuuuu, mulomowuuuu, mulomowuuuu, mulomoweeeee,
    mulomowuuuu, mulomo udzakupeeeza….black missionaries

  23. chimwemwe says:

    Goodall is this what you wanted us to clap hands for, my salary is half now what is was 6 months ago. We should avoid putting 80 years and above politicians in poistions of improtance, as we can see clearly Goodall does not have a clue of what is doing. Now Civil servants we demand a 100% salary increase or how the hell do you expect us to live. Mugabe took 20 years to finish the zim dollar this government is doing it in 2 years

  24. Akungolonje says:

    Zafika posauzana, kadziwa wekha mkhuto wa fulu. DPP moto!!!! imeneyo ndiye flames wawa, imatentha. Apatu a Malawi ndiye pongofunika tiisovetu basi otherwise iwowo they cushons and they will never feel this hardle.

  25. Alungwana says:

    Malawi my beloved country!

  26. Pageboy says:

    Falling currency falling President……komatu tisaone Kwacha ikupanga appreciate just before the opening of the tobacco marketing season…..paja mumawatelo alimi

  27. Mulhomwe Wankulu says:

    Amalawi kusamva!!!! Apadi tinaombela mfiti mmanja mwambi umeneu sudaname iyayi. Ati tivotere Professor, nde ndi izi tikuzionazitu. Iyeyu, Azibale ake, Omuthandizila ake ndi zinduna zake zili pheeeeee zikudyeleraa. Koma iwe Goodal kodi tigwire ziti kamba koti posachedwapa unati economy ikhala bwino bwtn January and April, pano ukusintha mangawa ukuti itenga nthawi, so which is which?

  28. Mr Dowa says:

    Sitikafikatu ulendo ndi wautalitu uwuuuuu a Gondwe,muonapo bwanji pamenepa? zavuta etiiii? Tsotu mmototu zinthuzi

  29. so the kwacha fall together with Mutharika that’s bad news

  30. KAVUWEVUWE says:

    ENA CHIFUKWA ANALUZA ANATHAWIRA KUNJA NDE AKUMANGA MANATI KUTI ASATHANDIZE BOMALI NDE CHONCHO KWANU NDI KWANU MNTHENGO MUDALAKA NJOKA

  31. joshua chawinga says:

    Peter mutharika is a failure just admit and let malawi go

  32. jedida says:

    We have CSOs and other instruments in our country who are supposed to make sure the government is playing it cards very well but look, they are fine spectator. pliz, stand for poor malawians.

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