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.

Mwanamvekha:Tough economic  times ahead

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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Team pedegu fails
2 months ago

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!!!

MCP Diehard
MCP Diehard
2 months ago

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… Read more »

Mapuyu North
Mapuyu North
2 months ago

The sentiments are coming from RBM not Mwananvekha. Why attacking him?
He is just commenting on something said by the central bank

Political commentator
2 months ago

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

Mike Bamusi
Mike Bamusi
3 months ago

It’s not just malawi going through difficult times and u dpp guys stole a lot of money and what do u expect

ankhwinda
3 months ago

Wolemekezeka a Mwanamveka ndiye ngati dziko tipange bwanji kuti economy yathu ikhale bwino ndale titaziponya apo

Shadreck
Shadreck
3 months ago

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

Mantz Banda
Mantz Banda
3 months ago

Indeed, we’re heading towards Iraq 🇮🇶

Mmalawi
Mmalawi
3 months ago

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

Justice for all
Justice for all
3 months ago

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

MCP Diehard
MCP Diehard
3 months ago

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…..

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