Malawi Kwacha depreciates, trading at K615/$
The advisory firm, Nico Assets Managers has said in its report that Malawi Kwacha has depreciated by 28.5 percent compared to a 14.5 annual depreciation rate recorded during the same period last year.
And the local unit will continue to depreciate as the lean season advances, the report said and in view of excess demand for dollars on the parallel market, according to foreign currency parallel market dealer.
According to Reserve Bank of Malawi (RBM), the Kwacha shed 2.3 percent against the dollar to trade at K615.79 as at December 3 2015 from a rate of K602.07 recorded on November 27 2015 in authorised dealer banks (ADBs).
The local unit has also sharply weakened against the British pound during the same period, to sell at K928.06 from K902.24.
The situation is also the same against the South Africa rand and euro, as the local unit has ceded 2.4 percent and 2.5 percent to trade at K43.13 from K42.14 and K654.52 from K638.79, respectively.
The loss in the kwacha value against major international trading currencies has mainly been attributed to a combination of a strengthening US dollar and speculation in the run up to the lean season. The situation has been worsened by low revenue from tobacco and lack of donor aid.
“The exchange rate is expected to continue depreciating in the short term as the lean season continues. This could be mitigated if the authorities sell forex to the private sector,” suggests the advisory firm in the report.
Economic experts have projected that the fall of the kwacha will result into the rising price of goods and service. And this will put pressure of workers asking for higher wages leading to more dreaded demonstrations.
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kodi bwanji timangoti goodal gondwe minister of finance. from bingu to peter.palibe ena anzeru oziwazachuma?
We need an economists who has worked in trouble times, goodall was FM during Bingu when malawi was dong well, we had debt written off, but a true economists performs during hard times, Goodall and Chuka combination is not working people have lost faith in kwacha and if action is not taken soon then farmers, industries will go bankrupt as they cannot sustain the exchange rate losses, which will result in job losses. Dont blame everything on cashgate that is the past we need solutions now, if you have run out of ideas make space for otehrs to have a try as the current system is a complete failure
Kulira kulipo abale anga maliro akatuluka atuluka munyumba why did you put the same blood in power. Means WA chule ndi WA chule basi
Maliro akatuluka munyumba atuluka why did you vote for the same blood.kulira kulipo,sorry for my malawi
Peter Santa Muthalika on the drive seat
STOP IMPORTATION OF LUXURY CARS FROM JSPAN UNTIL ECONOMY PIKS UP, ZIMBABWE ONCE DID IT.
Stop worrying about Kwacha depreciation for nothing will change even if to reaches K2000. Were we not there when 1 Dollar was K4 in 1994 and has anything changed or hav we died? Let us pray for rains not these virtual threats.
Not only Malawi. Check the currency depreciations in countries in the SADC region. You will be shocked. The Rand is @R16.04 against the Dollar from R14.00 just in two days.
Sometimes our negative actions and comments affect the currency to depreciate than we think.
Still waiting to clap hands for this administration, Paja anati December kikikikikikikiki
No 6, forget the Nsanje port and concentrate on doable projects. That project has some serious sovereignty and ecological challenges. Mozambique sikulola. Engage donors on the Sena – Beira railway line instead.
Komanso apatu ndiye sizikuyenda, Ng`ombe yaimuna ija bwanji?
Even though we sing liberation songs from our oppressive masters, “whites”, we still are under a massive oppression economically. Our new masters managed to orchestrate the economy to there favour. I wish Africa could unite against this greedy common enemy.
Does it means the driver is still on the seat or he has moved?
Chuka and Goodall must go. Their time came and it has now passed.As for those who blithely talk about exports, please bear in mind that that requires innovative thinking and creativity and thinking outside the box. All these are as scarce as dollars in Malawi
F*** this country and its currancy.
Peter Mutharika and DPP government doing what it knows best…..poor Malawians are really in hot soup
world wide osalozana zala apa asaaaa.
Problems problems problems. Consult JZU. The man can assist.
Dollar is between k645 to k653 as of today i hope ndi zomwe Goodal amanena kuti by December ziyamba kuyenda bwino kwambiri
Turning into an exporting country cannot take place overnight. The best we can do at the moment is to revive the Nsanje port project and inject any available cash into the same even if it means heavy borrowing. Once it is up and running, we will generate a lot of revenue from countries that will also use it and better our economy. Other than that, we are facing an uphill battle. Of course Mozambique is a very crucial player in the same and that is where we need the most diplomatic approach to bring them to the discussion table and map the way forward.
Point of correction. The last sentence should read ”there is no US$ in most of the banks”
K615/$? mwana kwambiri apa. It was trading at 645/$ as of last week. As of today its trading at K652/$. What is written in the papers is not what is on the ground,please Nyasatimes crosscheck with the National Bank, Inde Bank, NBS, MSB and others, you will see and there is dollars at all..
Eversince Chuka has taken over the governorship not even 1 year has been spared for kwacha freefall since 2012 , his policies made PP umpopular and they lost the election, now this depreciation and inflation is causing this government headaches, Chuka policies are for western countries,and for banks to make huge profits at the expense of poor Malawians. He as a governor should resign, has failed miserably as my salary has lost 1/3 purchasing power just in 6 months due to 33% devaluation.
Tough times are here and ahead Ali ndi mwana agwiritse.
Sustained focus on developing an export economy will address the Kwacha troubles in the long term. But for the short term, surely Govt has to restrict import of unnecessary goods and services.