Malawi Kwacha remains stable after 44% devaluation
The Malawi Kwacha has remained stable two months after the 44 percent devaluation, confirming government stance that the devaluation was the necessary devil.
The Reserve Bank of Malawi (RBM) devalued the local unit on November 9, 2023 to align the currency’s value with the market forces.
Over eight weeks since then, the currency remains at 1,700kwacha to a dollar despite the RBM conducting forex auctions bimonthly.
This is a measure aimed at ensuring free movement of the exchange rate.
According to the Reserve Bank of Malawi statement, the latest forex auction raised US$400,000 US at a fixed rate of K1,700 per dollar hence the stability of the exchange rate.
Meanwhile, a governance and human rights advocate has hinted that the country is showing positive signs of economic recovery.
Undule Mwakasungula cites austerity measures on presidential trips, abroad, but argues that such trips attract aid and expanded investment opportunities.
Last year, President Lazarus Chakwera cancelled all his international trips in a bid to save resources amid the economic crisis.
Malawi relies on foreign aid and investments to support its development goals.
Mwakasungula therefore appeals to Malawians to raise hope of significant economic recovery.
