Malawi Kwacha stabilising: To trade at K620/US$

The Reserve Bank of Malawi has confirmed that the country’s local currency,  Kwacha which has been in free fall in recent months, was stabilizing against the US dollar with the Central Bank dealing rate closing at 3675 units Saturday while in some bureaux de change adjustments were being done while customers transacted.

Malawi Kwacha: Fragile stability

Malawi Kwacha: Fragile stability

Malawi kwacha back

Malawi kwacha back

The central bank said the local unit has appreciated against the dollar, British pound and South Africa rand as well as the euro.

The fragile stability of the kwacha forced some authorised dealer banks (ADBs) to alter downwards the rate at which they have been buying the kwacha from customers.

Foreign exchange rates in some authorised dealer banks show that the kwacha is trading between K710 and K719 to a dollar.

At FMB Kwacha is at K719.72 to a dollar, at Inde Bank it is K719.72 while at Golden Forex Bureau the rates are a Kwacha at K710 to a dollar.

The central bank has not provided an explanation behind the gain in the value of the kwacha.

Mbane Ngwira, the Reserve Bank spokesperson, said the Kwacha has been “stabilizing and appreciating”, saying it is expected the local currency will remain strong.

Economics professor at Chancellor College, Ben Kaluwa, told a local press that the Kwacha may trade as low as K620 or thereabout by next month to the greenback owing to various forces on the market.

He said Kwacha will strengthen with earnings from export commodities such as tobacco, the country’s main foreign-currency earner and low demand of the dollar after private traders and government imported farm inputs.

Chikavu Nyirenda, an economics lecturer at Catholic University, said the appreciation of the local currency was good for the national economy as it could result in stable prices and ease the inflation rate.

Malawi’s inflation rate stood at 24 percent, according to Malawi’s National Statistical Office.

Finance Minister Goodall Gondwe recently told parliament that the Kwacha exchange rate seems to have reached “the point of equilibrium” and that the local currency should start gaining stability.

In economics, equilibrium is a state in which forces such as supply and demand are balanced, and in the absence of external influences, the value of economic variables.

“The Malawi economy will be back on track,” confident Gondwe has said.

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37 thoughts on “Malawi Kwacha stabilising: To trade at K620/US$”

  1. Winston Msowoya says:

    Mr Minister, do you really call MK620 to us1$ stabilizing or you are teasing Malawians? As the Minister,are you proud of your weak performance? Please redouble your efforts,people are suffering jokes aside.

  2. naja says:

    theme of the story: kufuna kuwabela alimi afodya.

  3. dumisani mwale says:

    they just want to steal from us, these guys are clever come September and see how kwacha behave. awona fodya wayandikila eti!

  4. Hear Hear says:

    JB once said man is a very difficult animal. She narrated the story about a man and a horse. When the man was walking together with the horse, people found faults with him. When he rode on the horse, people found faults with him. When he carried the horse on his back, people found faults with him. This is what Malawians are doing. When the kwacha depreciates, people want Goodal’s head. When the kwacha appreciates, people want Goodal’s head. One wonders what then do Malawians want? A hopeless nation indeed!

  5. Boja says:

    The best way let farmers be paid in USA dollars and be given USA Dollars hard cash. Keep it and exchange it between November and February next year.

    A farmer has endured all these months with the free falling Kwacha. Now you say Kwacha is appreaciating. What is causing Kwacha to appreaciate.

  6. pido says:

    Thom osangoyamikira zili zonse. Think of a farmer who along the time was using his money on high prices of farm inputs. Today popeza akufuna kuyamba kugulitsa fodya amvekere ndalama yakwera. Zopusa izi popeza alomwe salima fodya you want to kill central region economically agalu inu

  7. 2016 welcome says:

    What is the view of Tobacco Association of Malawi (TAMA) on this, that is if at all it exists.

  8. Chilungamo Chimawawa says:

    hahahaha this govt is a thief. you are deliberately appreciating the value of kwacha coz you want to milk tobacco farmers out. soon after stealing the hard earned money then you devaluate again. God will punish APM and his friend

  9. vikunowa says:

    I smell a serious conspiracy against a local tobacco farmers. I pray that my colleagues especially in the border districts will be smuggling their valuable commodity. By the way, Mr Zawadi Chilunga, the writer of this article, what type of Economics have you written here. I guess you read a bad book.

  10. abinte says:

    Kumanena zooona azungu abwera ndi ndalama zawo afuna amugule mulimi was fodya at a lower price.aku reserve bank machende anu osanena zoona bwanji.imatani kukhazikika mu January.

  11. George Mabvuto. says:

    Nkhani ndi kuyamba kwa fodya, muona akatseka Auction Floors.

  12. NDATOPA says:

    BAD NEWS TO A POOR MALAWIAN FARMER IMAGINE ON 22ND FEBRUARY 2016 IT WAS TRADING AT MK756 …… MBAVA INU ZACHABECHABE MUFUNA MUKOLORE POMWE SIMUNALIME…….. DPP MBUZI

  13. thom says:

    APM, Goodall, Chuka congratulations this is good sign, once kwacha appreciates it will bring inflation down. Thumbs up for bringing back the economy on track

  14. Kaziulika Chimugonda says:

    The problem is Indian Business Community. Will the Community bring down prices now that the Kwacha is 620 to 1US$ instead of 710/719? A Mwenye amanena kuti Kwacha yagwa. M’Mwenye sananenepo kuti Kwacha yachita appreciate. Boma lithandize anthu ku mbava za Chimwenye. Asise mitengo.

  15. zachisoni says:

    I TOLD YOU. FODYA AKAYAMBA KWACHA INKHALA NDI PHABVU. FODYA AKATHA BUSINESS AS USUAL (BAU). GUESS WHO IS BUYING THE TOBACCO?

  16. Chikutumbwe says:

    IF KWACHA IS GAINING, THIS ISNOT AN EQUILLIBRIUM. WHICH ECONOMICS ARE YOU USING?

    BESIDES, THE TEMPORARY GAIN OF LOCAL UNIT KWACHA IS MEANT TO STEAL FROM FARMERS NOW THAT THE SELLING SEASON IS AROUND THE CORNER.

    THIS GOVT IS VERY CROOKED!!!!!!

  17. Bazooka says:

    You peole are satanic. You want to dupe the tobacco farmers.Why now when the tobacco auction floors are about to open. God will punish you. The poor will remain poor in this country because of our manipulative tobacco buyers and inept governance.

  18. Kulila kwa mlimi says:

    I think one year tobacco farmers should boycott growing of the crop and let’s see how these thieves shall manipulate the currency market. Honestly this is unfair to the farmers. Allow them to open dollar accounts so that they also become players in this manipulative market!

  19. AAAAAAAAAAAAAAAAAAAA says:

    HOW MANY TUMBUKAS HAVE BEEN MENTIONED IN THIS ARTICLE? GONDWE, KALUA, NGWIRA, NYIREANDA NDIYE MUKUTI DZIKO LINGAYENDE???

  20. gotohell says:

    And what about the poor farmers who had to buy inputs at 740? Now they will get 620 for their tobacco? Really not fair this manipulation every year come tobacco season!

  21. Boma says:

    Akufuna kubera alimi a fodya apa. Alimi chonde tsekulani ma dollar acount kuti muzisintha ndalama nthawi yomwe mukufuna

  22. christopher says:

    zikuoneka ngati zabwina koma ayi,bwanji ndalama yathu ya malawi emakwera mphavu thawi yazokolola?!malawi sazatukuka chifukwa cha atsogoleli ajela.amaliwi chottidziwa akufuna atigule zokolla zathu pantenga ochipa,makmaka fodya poti amatigula muma dollar!!!zikuoneka kuti atsogolle athu amapindola makampan akunja akamagola fodya ndi thonje pantengo ochipa!!!

  23. Lupwito says:

    u so called government, How about alimife timagula ma farm inputs oh high prices????

  24. guarantor says:

    I am looking forward to MERA to revise prices of fuel and Electricity. Thank you.

  25. kk says:

    To me i have nothing to cerebrate because the prices of goods and commodities in our local markets will never go down, when the Kwacha is gaining power you have also as government check the prices of goods otherwise a poor person in the village will not profit with this whole drama

  26. Nangozo says:

    My suggestion is that there should be a bigger bank note such as 5,000 or even 10,000 to match the value less of our currency. Currently we have to carry a lot of money as if it is of much value when it is only little.

  27. Kaputeni Matchado says:

    If the kwacha is to stabilize why did the MERA idiots hike the pump prices of fuel? They must have been aware of this and wanted to rip Malawians before the stabilization of the Kwacha so that they can make more profits for the idiots in Government.

  28. Kuli ziiiiiii koma ikanakhala kuti kwacha yagwa bwezi pano mukutukwana peter kuti atule pansi udindo nsanje ndi yomwe yabvuta pa malawi

  29. Semani says:

    Its a good news for a better Malawi mwina boma lipume kutukwanidwa ndi anthu osamvesetsa, ohh yes! its difficult to understand

  30. mphwangwe says:

    This story is about tumbuka not the local currency. You must be sick to the head!!!!! Continue dreaming

  31. The Analyst says:

    O……………………………………………………………………………………………………………………………………………………………………………………………………………………..O
    The Kwacha appreciation has nothing whatsoever to do with supply and demand forces but a concept called economy – everyone stealing from everyone.
    Now that the tobacco farmers want to sell their labour in Dollars but receive Kwacha; everybody (banks, govt) want to steal from the poor farmer. Sad!

    By definition, an economy is nothing but a place or system where thieves “meet” and legally do their thievery.

    A son of a vendor steals from his father . . .
    The vendors steal from their consumers . . .
    Consumers steal from their companies . . .
    The companies steal from the consumers of their products (in profits). . .
    Banks steal from the companies and individuals (in interest, fees, penalties) . . .
    The government steals from everybody (in taxes).

    This is called an economy.

    Its just unfortunate that some participants in this system are caught, beaten up or even imprisoned when all they do is participate in greezing the wheel of this economy. Indeed some animals are more equal than others.
    O………………………………………………………………………………………………………………………………………………………………………………………………………………..O

  32. Chitapata says:

    I like it.

  33. Bwede says:

    What a shame! Mabanki mukufuna mubere alimi a fodya mupange ma biliyoni kwacha profet ankhaninkhani kachikena!

    Mukapsya ndithu kumwamba ambuye akuwona zonse!

  34. Akungolonje says:

    Kaya tizionera limodzi!!!!!!!!!!!!!!!!!!!!!

  35. Ineyo says:

    But mine is a simple question; does this do anything good to farmers? They were buying farm inputs at soaring prices when the dollar was trading at more than 620 malawi kwacha.

    This is total no sense ! Kubera alimi basi. Politicians are thugs and stupid people. Malawi work up!

  36. chibweya joe says:

    Kufuna kuwabela achikumbe a fodya. What factors have led to this strange stabilisation

  37. mussa says:

    wow thats great news am waiting forward to that.

Comments are closed.