Malawi Kwacha depreciation puzzles Mutharika

Nov 13, 2015 Business 115
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Malawi President Peter Mutharika

…Kwacha depreciation rate hits 25% record

Malawi President Peter Mutharika has echoed remarks made by Leader of Opposition Lazarus Chakwera who said the President does not know how to save the country’s economy from further meltdown.

Mutharika, who presided over the opening of Economics Association of Malawi (ECAMA) annual general conference on Wednesday in Mangochi, said he is not sure why the economy is picking up. The Malawi leader who also revealed that the Kwacha has for the past 10 months depreciatec against the US dollar by 25 percent, said the country has a good forex foundation to revitalize the economy.

Malawi President Peter Mutharika
Sleeping on the job?

“The Kwacha has depreciated against the US dollar by 24.55 percent in the first ten months of 2015 despite having a good forex reserve which stood at $950.4 million as of 30 October. This means we have 4.53 months of import cover. Yet, we are not economically in a desirable situation. Why is the economy not picking up? Things are falling apart” a puzzled Mutharika said.

Mutharika pleaded with the economic magnets attending the conference to be vigilant in inspiring the country’s economic growth by devising strategies to help salvage the economy from excessive meltdown. He insisted that the country’s economic reality is not bad and pleaded with Malawians to look on the brighter side of the country’s economic trajectory which the IMF declared as being off-track.

“The good news is that the Kwacha is appreciating again against all the major currencies, implying that our economic reality is not as bad as its perception wants us to believe. A people who are made to feel hopeless cannot move forward to drive an economy. Self-doubt is always a reverse gear of progress”.

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115 Comments

  2. Chakwera mpando Wa upulezident umaufuna ngati ungakwanise takonza iweyo kuti tizakuvotere, ossmangonama chifukwa choti anzanu Ali pa mpando, ine ndimakhulupira kuti izi zimachitika malinga ndi nthawi yomwe tili osamanamizira munthu

    1. That’s true brother. its about time. There is a leadership crisis all over the world. The world shall never be a better place. how many leaders Malawi has changed? Kamuzu, Muluzi Mutharika, Joyce and now Mutharika again. What have fixed? The more we change the more we speed up crisis to come to us.

  3. Mr chakwela can you plz give a solution to the problem it seems like you are wise enough to save malawi

  9. Ngati iwe Chakwera ukudziwa njira zobwezeretsera Chuma ukanangonena basi osati kumangobwebweta mbwelera zakozi M’busa wopangisa Manyazi iwe. Ukuona ngati Dziko lino ndila Mutharika yekha kapena? Shupit!!! NB: Tengan uthengawu mukamufikisire Munthu othawa Uthenga wa Chiyembekezo yo kumalimbana ndi zam’dziko.

  10. Chakwera kkkkkkkkkkkkk osamangobwebweta poti ndinu osusa ndee chilichose negative altitude mesa nawe uli ndiudindo bomamo show us!!!!!!!!!

  11. MUKUCHULUKA OLAMULA DIKIlani nthawi yanu zationetse maganizo anuwo .uyu siyeni amalize 5 yakeyo..osamathamangira unyozana si bhoo zimaphweka ziri kwawina ulamula dziko sikwawamba..apa zuwonetselatu kuti mwini utsogoleli samula mulamulira ndinu athu ena nde mafuna prznt atani pamenepa?

  12. Chule wadabwa m’madzi muli mwake.U hv not done enoug t REVITALISE th economy,hw can thngs improve THEMSELVES??If u feel u cant correct th mess created by ur late bro,u beta STEP DOWN.U wl b a hero.

  17. kodi mukunena pitala? hahaha guys tiye tingomusiya ameneyi, lets wek hard fo our on familiez, nanga titani coz it seemz ths man iz completely failing, if it waz at xul, akanakhala mkalasi mwanga i cud hav refered him straight ku resource centre coz he seem to hav some learning difficulties, samamva ameneyi,sangatithandize olo

  28. believe me or not,Malawi will never develop without donor support in recent years we had alot of donors supporting in different sectors of our country in health,education e.t.c.But still most Malawians suffered when we go to hospital no medicine,when children go to school no learning bcoz their teachers are on strike due to unpaid sararies,yet billions of kwachas were donated to their sectors.All that money went to the bank accounts of those people we elected they just monopolize the money & that is why whenever president finishes his/her term he or she is likely to answer a money related case e.g. atcheya stoled about 10 billion,late bingu stoled 62 billion & amayi & her fellows unknown billions now called cash-gate APM we are waiting.so do not wonder when we see donors walk away with their money coz they have seen how corruptic & untrustworthy our readers are,& for the investors dispite high taxes but also one investor complained a bout our hydro-electricity is not reliable that a big manufacturing company that manufacture eg cars can’t rely on it , there are high powerful that run on deseal but unfortunately they are expensive even deseal too.we should not forget that most countries in Africa rely on donors so who we are?

  32. Amalawi tisanyozane multi inuyo President mungathe kupangaz zomwe mukunenazo? Kuyendetsa dziko sikophweka tiyeni tipemphere mulungu atichosele mavutowa.

    1. abusa mwanena bwino paja mavuto athu amachosa ndi Mulungu ,,,,monga momwe anachosera Bingu achoseso amenewa sichoncho abusa,,,,,NDE pempherani molimbika a chose changu Chilima anjoye tizaka tasalato kenako mwiniwake Chakwera nkuzakwera kuti malawi akwereso

  33. Utsogoleri wamasomphenya mmalawi wagona nd MCP basi,zinaz zizingotibwezeletsa mmbuyo,,it seems chakwera is more intelligent& he wil bring bac de country economy to normal in 2019.

  34. Politics gvs me headache voti yanga giv it back to slogan palibe uyo adzasithe zithu never we r still in darkness era yes weresky era its only 3 yrs bfore death carry off hiz life my president webster rayson thom aka bingu mutharika had long term plans that he wanted to fufill but due to jealous of death madala aja osanama anali atate palibe amkaphweketsa tangoganizani 2004-6 ine zokuti kumakhala devaluation zindimkadziwa

  41. malawi we poor even if kwacha depreciates by 100 percent the prez will stil enjoy his fortuner n range rovers ……iyeyo sizimamukhuza

  49. Apa zaonesanso kuti mamvedwe a chingerezi akuvuta, chifukwa sleeping on the job uyu sakutanthauza kuti the president was sleeping while at work koma kuti the president is ever sleeping and at times he does wake up and attend to his duties as president. This admin was refering to what the president said, when he said he was baffled that in 10 months the kwacha has depreciated by 25% , meaning that yesterday he was awake and he realised that the economy had reached at its critical stage a point of no return. In short peter mutharika is totally ignorant of whatever is happening in the country where he is the president.

  50. Anthu akanakhala kuti amadya ndale, kumalawi kuno si bwenzi pano njala ikumakhalapo, ndale kuziyamba after chisankho mpaka zaka 5 zonse tikungokhalira zokha zokhazo mmalo mothandizana maganizo kuti dzikoli litukuke, zamanyazi ndithu.

    2. Ndipo onse omwe agwa pa zisankho amachita kudziwiratu kuti pa 5 yrs imeneyi akhale akutsogolera dziko ndi wakuti koma eee…throughout pokopoko instead of either rociling back and make corrections of what contributed their failure or be supportive in the uplifting of our own country..

  51. Kodi amene adati zinthu zisinthe ndani ngakhale nthawi ya mose anthu adakakamira kuti akufuna mfumu idawazunza mulungu atawaiwala kuti akumbuke mulengi wawo.

  55. Or mutakhala ndinzeru chotani mukuiwala mlengi chuma sichingakhale bwino mpaka yesu adzabwera mukuyesayesa koma ayi iwalani mukungokwanilitsa malemba

  56. Otsutsa Nanu Muli Ndi Mbali Mungathe Kukhala Ma Pathfinders And Trailblazers Osamangotsutsa. Amalawi Eni Ake Titengeponso Gawo,kudandaula Sikutithandiza,kunyoza Otilamula Sikungasinthe Zinthu. During The Inaugural Of President G Bush He Said
    “i Take As My Guide The Hope Of A Saint;
    In Crucial Things :Unity,
    In Important Things: Diversity,
    In All Things: Generosity. Tangoelekezani Otsutsanu Mutakakopa Ma Kampani Angapo Kunja Achinyamata Apeze Zochita Simungadzapangetu Kampeni Ai Mudzangolowa Chamutu! Olemba nyuzi kumalembanso zomanga osati zopasula,
    LONG LIVE GENUINE DEMOCRACY!

  59. Kkkkkkkk…nde mwasowa zotipatsira tsopano. Inu mkoyamba kuona munthu akugona pa ntchito?
    Azigona munthu mu church akumvera Mau amulungu oti adzapulumutsidwe nawo.
    kwatsalaku mutiuza kuti, president anali Ku toilet lero.

  60. Our neighbours stopped these type of politics a long time ago. You do think that you are pulling down Peter, whilst you are dragging our nation backward.

  62. BLAMING AND COMPLAINING MAKE MATTERS WORSE
    Just Some 7 Years Back The World Faced Global Recession Where We Saw Alot Of European Countries Striving To Regain Their Economy. Fall Of Shipping Volume,unemployment,financial Crisis,travel (tourism)suffered A Strong Slow Down From 2008,devaluation And Political Instability Were Some Of The Aftermonths Of Global Recession.
    In Africa We Are Not Spared,we Have Seen Alot Of Countries In Same Situations Which Other Countries In Europed Faced Before And Malawi Has Not Been Spared. When The President Openly Said Malawi Is At Risk”economically”many Blamed Him But As A Father Of A Nation He Had To And For Me I Did Not See Any Problem With That. Malawi As A Nation Regardless Of Which Political Party,region,tribe And Religion We Belong To Need To Find Ways And Solution To Get Back On Track. Bring More Investers To Open Their Businesses Here BUT We Need To CHECK ON TAXES Which We Give To These Investers. Some Investors Withdraws Due To Higher Taxes Whch We Give Them

  64. Kodi inu andale,maka otsuts,a,mukuoneka kuti mulindi nzeruyothandiza kuti zisinthe koma mukungo blamer,mukufunakaye azasankhe inu,bt it will be toolate,nanunsozizakhala chomwechi,kungofuna mpando basi musatipusise ndi ndalezanu,muli kumeneko kuti muzithandizana aaaaah koma ndale zakadziko kakang’onoka.

  71. @Makamo why are people from North used by cheap Politicians to haul insults?I am no more a Northerner I hate talking insults and yet you belong to synod?

  72. On economy let me say this in chichewa ‘Musatinamize wawa aku mudzi pa za divaluweshoni poti ili ndi vuto la dziko lonse, kodi inu otsutsa mukadzalowa m’boma mudzapanga ndalama zanuzanu?……quote from Lucius Banda’s song called YAHWE

    3. Yes like anybody else I would like to live a long life, enjoy like everybody but NO what is the meaning of life when your brothers cant afford a bag of maize…….kikikikik!

  73. The President is not an Accountant how do you save without products.?The Reserve Bank and Treasury are specialists in monetary issues not verbal saving when there is nothing to save cheating people that Presidents do accounting BoDza!

  79. I don’t think the last paragraph was a real quote from APM. Its contradictory. In other words Mk is loosing K2 – K3 each passing day so how could the whole of him conclude that MK was appreciating against major currencies.

  80. l don’t know if our currency can apriciet when little goods are exported. More tax thus increasing cost of production. This triggers companies to rise price of thier pruducts. Most affected are those living below the poverty line.

    2. this bwampini has failed us he must resign and pave way for those people who are capable of running this country ..khalamba zinazi kukakamira eeeh

    3. Deliver sudsidised farm inputs in good time considering our rainfall partten, all involved in cashgate should be brought to books without looking at someone`s political affliation and make sure the healthy system is operational- make sure drugs are not stoled, make sure patient are fed enough meals so as to facillitate recovery and also make sure that scanning equipments are functional. He mentioned these just to mention afew. Mr Josephy, my questions are; if farm inputs are delivered in good time, can we not improve our food security? if all cases related to cashgate are brought to book as per demands by some donors, will we not win donor confidence back? and if drugs are not stolen, patients are fed with enough meals and scanning equipments are operational in our hospitals, will we not have a running healthy system?

  87. A leader who’s surprised at the deterioration of the economy of his government is not fit to lead a country. Give back Mk577 bn then the economy will recover. Mbava at their best.

  88. Ndizimenezi bomali lilibe mtsogoleli. Bala ndi aneneri ake ali mtulo.

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