…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.
“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”.