Malawi Kwacha slips against US Dollar slighlty
Malawi Kwacha slightly depreciated by by 0.3 against the US dollar in the month of April, Reserve Bank of Malawi (RBM) figures have shown.
The local currency also had a slight depreciation against currencies of major trading partner 3.6 percent against the British pound, 5.1 percent against the South African Rand and 3.9 percent against the Euro.
The slight depreciation comes despite foreign exchange reserves increasing during the month.
According to Blantyre-based Nico Asset Managers Limited latest monthly economic brief, kwacha closed the month of April at K444.41 against the dollar resulting in a year on year depreciation of the kwacha against the dollar of 11.3 percent in April 2015.
In April 2014, the kwacha closed at K399.19 per dollar, RBM figures show.
“The exchange rate is expected to start appreciating as tobacco proceeds flow into the market,” says the firm.
The opposition and some sections of economists have accused the Peter Mutharika government of “deception” on economy, saying the Kwacha currency appreciation is being manipulated.
“After the free fall of the kwacha in the last half of 2014, it is a known fact that the government manipulated the kwacha in December last year to score cheap political points,” leader of opposition Lazarus Chakwera told parliament.
Chakwera said the artificial appreciation of the Kwacha has hit hard the vast majority of Malawians who are in the agricultural who also happen to be the major foreign exchange earners for the country.
“We all know that farmers bought their inputs expensively at the peak of the kwacha depreciation, come the time to sell their produce, farmers are literally being robbed in broad day light under the force pretext that the kwacha has appreciated,” he pointed out.
Economics Association of Malawi (Ecama) president Henry Kachaje backed Chakwera’s assertions.
“ Maybe let us start measuring our economic growth and development by looking at the people on the ground instead of doing it on the computer Spreadsheet,” he commented.
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I share the sentiments expressed by Chakwera. The govt is unconscious tht commercial banks r exploiting our farmers. This is done through several means: manipulating the kwacha value; using farmers; ignorance on what rate to use: the sales’ date or the withdrawing date, the TT or Cash rate…… Banks are taking advantage of this farmers’ ignorance hence the supernormal profits amidst a shrinking economy….. I wonder what RBM is doing. Or perhaps its because its executives are shareholders in the very same banks robbing the vulnerable farmers? Something must be done here……..
Sad that even useless facts by pple like Tatopa are published on E-net. What if intellijent pple are given own space for tangible, factual and objective contributions.
Ndimapulani amenewo obera alimi you wanna c as soon as the floors closses its doors the kwacha will sink heavly.Anyapaphi okuba inu
Factor endownment theory
Although the economy is gauged based on GDP it will be silly to utilise that in relationship with the Malawi economy because sources of making the country’s economy differs from one country to the other. I wonder if those who pretend to follow how our economy is performing if they know how the economy of developed countries is doing? Go to the U.S., UK and other strong economies you will stop vomiting your useless accusations because they have reached a stage where most of their businesses are closing down, unemployment is rampant, items are going up in their supermarkets on… Read more »
Kufuna potibelepo mbewa zathu mutigule mosika, nyamanu
do not say malawi z a poor country but we valued poor mind readers
The economy is measured in GDP. Don’t tell us abstract issues. What is it in our forex reserves. Tell me what we have in maize silos.
Job encouragement. What have u done? I am telling you now I have better options.
That Is how we end up selling the harvest at low low price and the results is the price we pay for our seeds and fertilizer plus labour it will be the same amount after selling it hence no profit
Tatopa is not objective!!!?? Henry Kachaje was among the first Malawians to condemn Chakwera over MP Salary Increase. Ngati mwatopa, go home and keep quiet…!!!