Reserve Bank of Malawi celebrates 50 years of existence amid economic turmoil, high inflation rate

Malawi’s central bank, the Reserve Bank of Malawi on Monday chalked 50 years of its existence amid economic turmoil and high inflation rates the bank is battling to put under control.

Chuka: No champaign on golden jubilee due to economic challenges

Chuka: No champaign on golden jubilee due to economic challenges

The Reserve Bank of Malawi building

The Reserve Bank of Malawi building

The bank’s governor Charles Chuka conceded in an interview it would be awkward to have full blown champaign celebrations amid harsh economic atmosphere.

He said the bank is battling to reduce the 25 per cent inflation rate, the highest in southern Africa and has pushed up the cost of living for most Malawians.

However , Chuka, who started his career as an economist at the bank said there are reasons to smile as the central bank has expanded rapidly with all British staff replaced by local experts.

As Chuka was leading the central bank’s celebration, Minister of Health Peter Kumpalume was meeting district health officers in Mangochi to chat the way forward following the increasingly collapsing health sector which has suspended most of its key activities due to financial problems Capital Hill as a result of the economic turmoil.

Most poor subsistence farmers are yet to receive coupons to get subsidised farm inputs as the Ministry of Agriculture is rocked with severe financial woes as the economic situation worsens in Malawi.

Chuka said the bank is working round the clock to ring down the inflation rate to acceptable standards.

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9 thoughts on “Reserve Bank of Malawi celebrates 50 years of existence amid economic turmoil, high inflation rate”

  1. sam says:

    Where is our Cama Director Kapito, please can you tackle RBM they are redcuing consumer buying power

  2. mphatso says:

    A Chuka nthawi ya PP ama chita cashgate munali kuti, kapena munali pa leave, muna lephela kungwira cashgate, ma lephera inflation, ma lephera kwacha ku ugwa, ma commercial banks akuchita profit ekha mu Malawi. Mapereka Mabvoto ekha basi

  3. paul says:

    It is not an acheivement that british have been replaced, it would have been an acheivement if inflation and kwacha fall would be in control, Under your governership you have taken kwacha from 167 to 620, inflation to 25%. Tatopa please WAKE UP RBM

  4. Moya says:

    What are you celebrating? That after 50years u are a central bank of the poorest country/economy? The central bank that was at the center of cashgate? 6seriously you shouldnt even talk of celebration but 50yrs of sadness,pathetic and a failure as a bank and financial industry. As some one said if this was a shop RBM was supposed to b closed and subcobtract services from other booming economies around SADC.

  5. nthandalanda says:

    Stupid Tchuka. Stupid whoever is there. Life is tough outside here.

  6. Morris says:

    Please fix the economy hard times i cannot make ends meet.

  7. milonde says:

    50 years of inactivity. Cashgate was your baby and your greatest acheivement. And exactly how are you planning to bring down inflation.How boss?

  8. SONG says:

    That reserve bank was built by Kamuzu Banda and look the way it is. You spoiled it, there was John Tembo, Mathews Chikaonda, Chakakala Chazia very capable to put inflation down. Where is that wisdom gone and you go on platform and insult Kamuzu what did MCP do in Malawi. Kamuzu left all infrastructure for you guys to utilize run govt and people of Malawi must be served accordingly.

  9. ben says:

    RBM Under Mr Chuka has grossly underperformed and has let down poor Malawians. Malawi under his governership has only experienced Inflation and loss of Kwacha Value as all RBM recent polices are infact fuelling inflation. Free lessons for Mr Chuka

    1. Increase lending rate to 35% to mop up excess liquidity. Yes its bad for business but until inflation is high lending rate has to be high, then only inflation will come down and then lending rates can be revised downwards once inflation goes down.
    2. Increasee LRR to Banks to 15% this will mop up more liquidity.
    3. Greedy Exporters/Banks driving Kwacha fall, due to floating regime, Fix the kwacha or tighten regulations so kwacha fall should be limited to acceptable levels. Forex is scarce is Malawi if you leave forex an important commoddity for Malawi to import essentials is left to the greedy banks/exporters is not a good idea, take the power away from them, or they will devalue more for there personall benefits at the expense of poor Malawians.
    4. Ban imports for items already manufactured.grown in Malawi. We dont need to import potatoes.Onions, apples, mangoes, juices toothpicks and many non essential imports should be banned.
    5. Give tax incentives holidays to investors in the manufacturing and value adding.

    These are the only sacrifices to bring economy in track, some could be counter IMF, but they are neccessary and IMF should be able to understand that Malawis economy is different than other countries.

    The reason there are no medicines, is because due to inflation, currency depreciation as Malawi budgets are in kwacha and kwachas has lst 40% of its value so how does the Ministry of Health buy drugs for 16million people when 40% of the purchasing power has been eroded, so now it can only buy 60% of medicines budgetted. The impact of inflation and devaluation is always felt 6 months after it is done, but the impact force is cruel to poor people

    Mabvuto achuluka ku Malawi, God Save us

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