The Kwacha may be under pressure, but government says Malawians should not expect any devaluation from its latest talks with the IMF.
Government has dismissed reports that it is negotiating with the International Monetary Fund (IMF) to devalue the Malawi Kwacha as part of discussions for a new Extended Credit Facility (ECF) programme.
Minister of Information and Communications Technology Shadric Namalomba said devaluation of the Kwacha is not under discussion with the IMF and is not on the agenda of the ongoing negotiations.
Namalomba said an IMF mission, which visited Malawi from September 22 to October 6, recognised progress made in the country’s economic reforms.
According to the minister, the mission also noted considerable progress towards developing policies and reforms that could support a new ECF arrangement.
He said government remains committed to addressing foreign exchange shortages, strengthening fiscal discipline, increasing production and easing the cost of living.
Government has meanwhile urged citizens, businesses and the media to avoid speculation and instead rely on verified information from government and relevant monetary authorities.
