Reserve Bank admits Malawi Kwacha to continue depreciating: Mwanamvekha says ‘I am vindicated’
Malawians should brace for tough times as the Reserve Bank of Malawi (RBM) has warned that local currency, the kwacha will continue to depreciate against other trading currencies due to continued shortage of supply of foreign exchange to the market.
The central bank says continued shortage of supply of forex will trigger a further depreciation and this will likely raise the non-food inflation through high costs of imported goods including fuel.
Last week, the Malawi Energy Regulatory Authority (MERA) raised fuel pump price with petrol jumping from K830.60 to K899.20; diesel from K826.40 to K898.00 while paraffin jumped from K613.20 to K719.60 after another increase was effected a few months ago.
Minibus Owners Association of Malawi (Moan) responded by hiking bus fares by 10 percent, straining Malawians economically further.
“The continued shortage of supply foreign exchange to the market is expected to trigger a further depreciation of the exchange rate in the near term, thereby raising non-food inflation through high costs of imported goods including fuel,” reads RBM’s Market Intelligence Report.
Meanwhile, former ruling Democratic Progressive Party (DPP) spokesperson on finance, Joseph Mathyola Mwanamvekha, observed that the Tonse Alliance government is no longer instilling confidence in Malawians as the leadership has deviated from the promises it made during the campaign.
Mwanamvekha also recently attracted headlines in the media when he said The Tonse Alliance Government has lost direction and is headed to the war torn country of Baghdad in Iraq instead of the promised Canaan.
“The fuel price increase is no good to a local man as prices for basic needs will rise and the depreciation of Kwacha will worsen the business community who depend on importation of goods including car dealers.
“The depletion of the import cover will see government failing to order the necessities like drugs and other medical supplies,” said Mwanamvekha.
“Time is the best judge, I feel vindicated almost six months down the line, it is sad to note that Malawians are still hopeless as the new captain they entrusted with the responsibility to steer the ship has met a storm and hit a rock in the process and subsequently lost the direction instead of going to Canaan [in Egype] is now heading towards Baghdad, the Capital City of Iraq, “ he said.
Mwanamvekha, who wants to be DPP’s torchbearer in 2025, said he will continue crisscrossing the country to appreciate challenges Malawians are facing.
“ I have been going round the country in all the districts meeting the citizenry and not only the DPP members but different stakeholders to appreciate their economic hardships they are facing while giving them a message of hope that come 2025, DPP is there to rescue the.”Mwanamvekha said.
Mwanamvekha—trained economist—has held many senior positions in both private and government, including to Secretary to Treasury, CEO for different commercial banks.
And during his time as Minister of Finance, Malawi saw the Kwacha being stable at 735 against the US Dollar, inflation coming down from 31% to a single digit, interest rate from 41% to 14% and the import cover from one month to six months.
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Do you expect the economy to perform well after your Chakwerang’ombe has sucked all head’s of local councils and their deputies and their directors of finance and many PSes and many chief executives? Chakwera tu sadziwa kuti dziko limayenda bwanji. His arrogance and impunity will kill us because these have economic consequences. Just have a look at budget ceilings which abusa and mlusu have given to MDAs for the 2021-2022 financial year. You will be shocked how reduced the ceilings are and you wonder whether mlusu’s head is functioning at all. Awa ndimamina enieni a gavament ndithu!!!
Mubangulatu simunati. Zangoyamba panopa.
DPP corrupted every inch of this country, so to clear the rubble, we have to get rid of all unqualified PSs and other Govt saboteurs appointed by the very clueless and slow APM.
Tonse government was just getting acclimated to the processes of government before they start-putting on a real stamp of the Tonse agenda on every aspect of Malawian life. They had been out of government for 26 YEARS after all. Now onwards, watch how Chakwera and Mlusu will transform this country with real servant leadership and accountability. Even the donors are already praising them and promising direct budget support.
Regarding budget ceiling for MDAs and others in the 21/22 FY, the government is changing the fiscal year to start in April instead of July to align with the harvest period; Thus the 21/22 FY will only be 10 months hence the reduced ceilings.
It could be hard for a khadeti to understand this but worry not, we have real intelligent professional change agents and visionaries in the driving seat now. Why did you think Chakwera appointed Mlusu? BIG POSITIVE CHANGES coming to a town near you.
Cry me a River! 2100 Woyeeeee!
The sentiments are coming from RBM not Mwananvekha. Why attacking him?
He is just commenting on something said by the central bank
DULL headed mwanamveka, countries have been in lockdowns for so long pinning the economy of the world down due to COVID issue……why should you expect Malawi to flourish in this difficult period? DPP will never come back to power no matter what campaign you make
It’s not just malawi going through difficult times and u dpp guys stole a lot of money and what do u expect
Wolemekezeka a Mwanamveka ndiye ngati dziko tipange bwanji kuti economy yathu ikhale bwino ndale titaziponya apo
The Tonse alliance is not doing anything to create a friendly business environment.
They are milking the existing companies only to continue their own business
Malawi is going to collapse as Zimbabwe if we do not wake up
Indeed, we’re heading towards Iraq 🇮🇶
The macroeconomic environment has completely changed since you were the Finance minister, Mr Mwanamveka and it would be foolhardy to expect the economy to perform the same. You should take the COVID effect into consideration when making your silly statements
Mwananveka akuionela patali Ali pa bench but to say the truth he is making a serious sense mlusi seems like he is new in government business
HAHAHA Another paid advertisement for Mwanamvekha through NyasaTimes.
Vindication for what? The country has been on lockdown so shortage of forex was expected duh! The RBM publishes the guidelines all the time.
This guy presided over Mulli 167 year loan repayment deal, Chisale Cementgate, sale of MSB, fake purchase of team buses during the 2020 campaign among other DPP criminal schemes AND now he wants us to give him keys to the entire store…..
What do you expect from an experimental leadership? Again the current management can not turn the misfortune of the kwacha. Bring back kabambe else we are doomed.
They use people not merit, only relationship
The same Kabambe that gave himself a 120% salary increase and illegally loaned Mulli billions through RBM at the expense of Malawians? Since when does the RBM loan money to private citizens or companies that are not banks?
Frankly speaking, a party that was led by Chisale and Mchacha is in no position to speak on issues of leadership. It should actually be a crime punishable with 5 years IPL for DPP to utter anything regarding leadership.
Vindicated from what! Even a first year economics student knows that this is is not strange all. All economies are suffering because of the impact of CIVID-19. What did Mwanamveka do as Minister of Finance apart from helping the prince of thieves steal as much as they could (and taking care of zithumwa). Shut up your filthy mount please! If South African economy is on its knees, what do you expect from fragile economies like that of Malawi.
What moral grounds do you have you idiot who could give your home boy Mulli 167 to repay government money he stole from MSB!
Comrade Mwanamweka can you please provide a photo that makes you look like a leader. For truly Comrade in the photo in this story you look brutish! Comrade you have to look like an electable leader surly you like Bingu and APM are not gifted with good looks. It’s time DPP elected a leader who looks Presidential a smartly dressed and handsome.
Boma lili busy ndizinthu zopusa.Instead of fixing the economy ali busy training a youth 75 kuti atizunzenso
ngati MCP yoyamba ija
Indeed it’s a brutal look by a facilitator of the looting of NSB by Mulli.
Kulephela kwa tonse alliance ndi mlusu wawoyo kupose apa? Buying party cloth in large quantities should not have been criteria for getting a ministerial post abale. Apa mupweteketsa ma small business komanso a Malawi osauka ndi zibwana zanuzo.
Ife tikudya katatu ku tonse alliance and things will only get better now that the vaccine is on the ground. Can anyone really serious compare the calibre of Hon. Mlusu’s career achievements to that of Mwanamvekha? Ask Mwanayu yourself and he will tell you that Mlusu is a Giant in all things Financial.
This is total stupidity and unfortunately it’s us Malawians that will pay the price. I don’t even want to hear that it’s happening worldwide because worldwide it’s not happening at this rate.
Miss DPP, miss that old man’s leadership
Its sad that anthu awa akuyambitsa gulu la nkhanza ngati MYP.Zamveka
kuti anthu 75 akupangidwa train
akuwatchula kuti ‘youths’ mostly from central region
MCP will never change, they are now training a group of
young people to be handling people who will oppose their ideologies in the near
future
Lets Pray for Malawi. MCP is slowly becoming a beast
Very disappointing. What is it with MCP and authoritarian rule?
I
have a niece who has confirmed that MCP is indeed training a group of young men
from central region to deal with anyone opposing them
One party state in the offing
Clueless Tonse Liers
MCP is inherently
evil and that cannot not be taken away
from them.
MCP thinks having people not say anything on how they govern
will solve problems in country? shame.
By reintroducing Malawi Young Pioneer In the name “Youth” Is
not only disturbing to us but also undermining democracy we struggled and some almost lost their
lives for.
MCP ikuyambitsano Pioneer
2 kuseliku, koma tiziona amalawi. Bodyguard wa Chakwera is amongst the 75 being
trained now.
Koma anatilodza ifeyo ndi katswiri!!! koma mmalo mokoza
chuma mpakana kuyambanso ma training a pionner???????
EEISH KOMA A CHAKWERA! NDILIBE MAWU. I REGRET VOTING FOR YOU
Government full of empty promises! Ntchito kuopseza anthu.
Nde mukuti za mayufi zitithandiza chani?
So when they said 1 miilion jobs amatanthauza kuti ayamba
ndi 75 ali ku training ya 6 weeks wa? Almighty
save us please, we don’t need another one party state.
Malawi needs to be saved from this one party state
I knew it! I knew MCP wouldn’t be trusted