Malawians should brace themselves for hard times as the local currency Kwacha continues to weaken further against the US dollar with the middle rate falling to about K440 compared to about K430.
According to Consumer Association of Malawi (Cama) executive director John Kapito, this will see a number of goods increase in prices .
The Kwacha has been facing renewed pressure and government said it needed donor support to keep the local currency from dropping into red zone territory.
Analysts are projecting that the local unit may hit K525 to the dollar by December this current average selling price of K460.
Kapito said the fall of the kwacha has serious implications for local consumers and drastic implications for the country.
“Due to the fall of the kwacha, there will certainly be price increases in basic goods and services. The cost of living will be unbearable while employees will be asking for higher wages. This is not a situation to watch, someone has to tell us what exactly is happening,” said Kapito in comments published by The Nation.
Ministry of Finance, Economic Planning and Development spokesperson Nations Msowoyao said they are working on some projects which may trigger disbursements.
“We are expecting aid from the European Union [EU], the World Bank and the African Development Bank towards the end of this financial year,” said Msowoya.
Reserve Bank of Malawi Governor Charles Chuka said recently that there should be no cause for panick with the continue fall of the Kwacha.