Malawi Kwacha slips against US Dollar slighlty

Kwacha in slight depreciation

Kwacha in slight depreciation

Malawi kwachaMalawi 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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12 thoughts on “Malawi Kwacha slips against US Dollar slighlty”

  1. Karrib says:

    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……..

  2. hango says:

    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.

  3. Connell Papa Pee says:

    Ndimapulani amenewo obera alimi you wanna c as soon as the floors closses its doors the kwacha will sink heavly.Anyapaphi okuba inu

  4. Tsiripas says:

    Factor endownment theory

  5. International Observer says:

    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 a weekly basis, the governments are deep into domestic borrowing etc. by the way why can’t you ask yourselves how phrases like “Quantitative Easing” is being used in their economic jargon? You are the ones who are misleading the locals who haven’t been to school. Where on earth have you seen prices of products being reduced because the currency has appreciated if not only reduction to enable old stock to sell fast? It is a pity that you people are educated put lack travelling to know how other people live. If I told you that there are white people who will ask for money from a black person you will dispute it because munazolowera kuonera zabwino zokha zokha pa TV. Kumayenda kuti mudziona maso a Nkhono, osati mukayenda ndiye kuti munali ku Johannesburg, Lusaka, Harare kapena Maputo. Very shameful Malawians!!!!!!!!!

  6. Tchinga Chisoni says:

    Kufuna potibelepo mbewa zathu mutigule mosika, nyamanu

  7. loyd chimenya magawa says:

    do not say malawi z a poor country but we valued poor mind readers

  8. angoni says:

    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.

  9. mohamed says:

    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

  10. Wa Makala says:

    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…!!!

  11. hon says:

    Tatopa hv u heard about currency swap before and its meaning? That’s wat chakwera chakwera meant. There is no way Malawi kwacha gaining ground with any exports activities happening around

  12. Tatopa says:

    Henry Kachaje will talk sense as long as it is not about Chakwera. I have read Kachajes writings 101 times. MCP blind loyalty is Kachajes weakness. Learned sons of Malawi do not over indulge in politics because you lose steam and objectivity.

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