The Malawi Kwacha has weakened sharply to a record low against the dollar by 6.4 percent since the start of the year, Finance Minister Goodall Gondwe has confirmed the slump.
The free fall of the local currency is the weakest level ever against the greenback and inflation is increasing becoming high pushing up the cost of living.
Foreign exchange market indicates the kwacha is trading at K1 000 to the British pound and K768 to the dollar.
Finance minister Gondwe conceded that the Kwacha fall has “worsened”.
He however assured Malawians that all will be well mid this year though stressing it will take time for the economy to fully recover.
Gondwe was upbeat IMF will lead donors back to Malawi to resume aid in the year.
The kwacha’s performance is pushing prices of commodities and services up causing discomfort to Malawians, among them students studying with foreign institutions and paying their fees in foreign currency too.
An investment management and advisory firm named Nico Asset Managers, said in its economic brief the kwacha would continue depreciating in the short term as the lean season continued.
The declines compound the troubles of an economy hit hard by a downturn in commodity prices and its inability to put into place what economists say are necessary revival strategy.
“We are a country in crisis,” commented opposition politician and parliamentarian Kamlepo Kalua.