Kwacha sinks to new lows: Brace for hard times, Malawians warned

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.

Kwacha

Kwacha

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.

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Chibiliti
Guest

Southerners contribute little to the economy of Malawi. It is tobacco from the Central Region and Northern region that is making the economy of Malawi. That is why we want a federal system of government. We cannot continue feeding useless people.

ben
Guest
Chuka should be the worst governor in the history of all governors in the world, no country has lost so much value of its currency but we have done it under Chukas watch, and he has the courage to say no need to panick, you are supposed to warn these greedy commercial bank traders as they are fueling inflation which is disastrous for poor Malawians. How can you allow greedy exporters like tobacco companies, NGO to keep 80% of there export proceeds in Dollars they are taking advantage, the law should be reversed all export proceeds to be immediately converted… Read more »
MADA
Guest

AKULU AKULU MUTIPWETEKETSA SIZIKUYENDATU APA !! MAYOOOOOOO !!!!!!!!!

Mmwenye Wachigololo
Guest

I MISS MY WIFE HAVE YOU SEEN HER?
LETS AVOID HIV AND AIDS

Munthu wa Mulungu
Guest

Lawyer sangathandize kukweza chuma cha dziko. Ndipo amalawi sitinati. Tiona zakuda ndithu.

Malawian Patriot
Guest

Lack of knowledge about trade. Money is a thank you and what you need are things for everyday use. These are made by people when they are organised. Please Malawi organize yourselves, create a common vision for production of goods and services that you need and go do it. This is the only way. A promise can be broken (Reserve Bank Promises to pay on demand the sum of K1000 etc, no meaning in this if you can see and read what I mean)/ Knowledge and change of mind set is urgently needed in Malawi.

Kanyimbi
Guest

Ku Malawi Chilungamo chinatha. Mwina Yesu akazabwelanso.

Nyambitoni
Guest

Chukeconomics “No cause for alarm”

mjomba wasyene
Guest

nyani pa stearing ku malawi

Abdul Azizi Budafrika
Guest

Nations Msowoya should do better than telling us that they are waiting for donor disbursements thats nonsense! What we want is an economy that ticks with or without donors. We are a 50 year old nation for christ sake.

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