Malawi kwacha depreciates against major currencies
The Malawi kwacha has depreciated over the last four weeks against some major international currencies at the official markets, Reserve Bank of Malawi (RBM) official exchange rates indicate.
A currency trader, who preferred anonymity, said the Kwacha’s s depreciation was due to the market forces of demand and supply against major trading foreign currencies—the dollar, the pound sterling and the euro.
According to published reports, official figures indicate that the local unit retreated by three percent against the euro to the selling exchange rate at K462, down from K448.50, between August 23 and July 19.
The official exchange rates also indicate that the local unit depreciated by 3.5 percent against the pound to selling at K539.20 from K520.96 in the period under review.
The RBM figures indicate that the exchange rate which has been market determined since May 2012 after the historical 49 percent devaluation, slipped by about one percent against the dollar to selling at K345.86 on August 23.
However, the RBM official exchange rates indicate the kwacha appreciated by about 2.4 percent against the South African rand.
The Nation newspaper reported that with the foreign exchange demand peak ahead, and tobacco, Malawi’s major foreign exchange earner marketing season almost closed, experts have warned that the kwacha may experience intense pressure from imports such as fertilisers.
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