Malawi Kwacha Depreciates Again
Malawians should brace for more increase in prices of commodities following the recent depreciation of Malawi kwacha by 4.7 percent.
This follows the release of fourth forex auction results which Reserve Bank of Malawi conducted 27th September that indicates kwacha will now be trading at K1 180 against dollar from K1 126.
According to RBM Governor Wilson Banda all Authorized Dealer Banks participated at the auction and the new price is effective 2nd October
Reacting to the development, Malawi Economic Justice Network says Reserve Bank must find ways of getting forex and give commercial banks to ensure steady supply of foreign exchange as well as stability of kwacha.
The remarks by MEJN coordinator for southern region, Mike Banda, says while the forex auction is one of the best RBM can use to stabilize kwacha but existing mismatch between official Authorized Dealer Banks and parallel market rates is of concern.
Concurring with Banda another economist Moril Ndemanga has asked RMB to ensure the dollar is found in banks because black market is offering competitive rates
In January this year RBM said would be conducting forex auctions periodically to facilitate discovery of a prevailing market-clearing exchange rate for kwacha against major currencies, thereby promoting transparency in the determination of exchange rate
