Kwacha continues to lose value against dollar

Malawian President, Lazarus Chakwera

The Malawi kwacha has hit K1,126 to the dollar this month as it continues to lose value under the Lazarus Chakwera administration.

The Kwacha has fell by 2.8 percent from K1,095 last month.

This follows a foreign exchange auction the Reserve Bank of Malawi (RBM) conducted on Tuesday.

In a letter addressed to Authorised Dealer Banks (ADBs) on Thursday, Reserve Bank of Malawi Governor Wilson Banda said the maximum selling price of the Kwacha shall be K1,126.77 per dollar effective tomorrow, September 1.

The central bank announced in January this year that foreign exchange auctions will be determining the market clearing price of the Malawi Kwacha against the United States dollar and other major currencies.

However, on the black market and in some banks, the Kwacha is being sold at between K1500 and K1800 per dollar.

The Kwacha which was trading at K1,034.67 per dollar n December 2022 has been losing value for several months. Malawi has also been facing challenges of foreign currency scarcity for over a year.

Analysts have been advising the Lazarus Chakwera administration to control expenditure and use of foreign currency such as cutting foreign trips.


This site uses Akismet to reduce spam. Learn how your comment data is processed.