malawi devalues currency by third
Last Updated : GMT 16:22:18
Arab Today, arab today
Arab Today, arab today

Flotation to aid economy

Malawi devalues currency by third

Arab Today, arab today

Arab Today, arab today Malawi devalues currency by third

Malawi's new President Joyce Banda
Blantyre - Agencies

Malawi\'s new President Joyce Banda Malawi floated its currency on Monday, with the kwacha plunging a third against the US dollar as the impoverished nation bowed to a key demand of the International Monetary Fund to fix its troubled economy.
The central bank\'s notice of official exchange rates put one dollar at 250 kwacha, compared to 166 kwacha on Friday, a 33.598 percent value drop.
\"Following this devaluation, the kwacha is now fully liberalised,\" the Reserve Bank of Malawi said in a statement.
On the black market, the US dollar has sold at more than 300 kwacha, a disparity that drove foreign currency out of the banking system and into the hands of informal dealers.
\"At 250 kwacha per dollar the exchange rate is well adjusted, as the black market is certainly under-devalued,\" the central bank said.
The late president Bingu wa Mutharika had fixed the exchange rate in 2005.
Since then he had steadfastly refused to make a major devaluation, which he argued would hurt the poor.
The IMF has for months called for a devaluation to end a shortage of foreign currency that has left Malawi unable to import enough fuel to keep the nation running.
After Mutharika\'s sudden death last month, the new president Joyce Banda has moved quickly to restore relations with international lenders and donors.
Several key donors - including former colonial power Britain – have suspended aid to the impoverished southern African country, citing concerns about growing authoritarian tendencies in Mutharika\'s government.
Central bank governor Charles Chuka also announced a series of reforms to loosen controls on foreign currency.
Dollars earned at auctions of tobacco, Malawi\'s main export, can now be transferred to commercial banks. Previously all proceeds had to be routed through the Reserve Bank.
Foreign tourists will also be able to settle their local bills in major currencies, it added.
The bank said the devaluation of the kwacha was further expected to have the effect of reducing demand for imports of consumer goods in favour of domestically made products.
\"Most importantly, it should also, together with the liberalisation of foreign exchange market, contribute to government\'s efforts to reach early agreement with the IMF which should lead to unlocking donor flows in the next few months,\" it added.
The IMF suspended its programme with Malawi last year, for a credit of nearly $80 million that should have cushioned foreign exchange shortages.
Banda sacked Mutharika ally Perks Ligoya as head of the central bank, naming Chuka as the new chief.
Ligoya hung closely to Mutharika\'s fears about devaluation hurting the poor by sending prices soaring. But Chuka said businesses had for a long time already been forced to find foreign currency on the black market.
\"As a result, most commodity prices already reflect the black market rate. It is therefore expected that this devaluation should not trigger additional price increases,\" it said.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

malawi devalues currency by third malawi devalues currency by third

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

malawi devalues currency by third malawi devalues currency by third

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Prince's vision spurs new Cornwall village

GMT 03:12 2017 Saturday ,18 November

Prince's vision spurs new Cornwall village
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Israel ready to cooperate with Saudi

GMT 06:31 2017 Friday ,17 November

Israel ready to cooperate with Saudi
Arab Today, arab today Airbnb raided by Japan

GMT 01:55 2017 Saturday ,18 November

Airbnb raided by Japan
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Baidu speeds up AI progress

GMT 11:46 2017 Friday ,17 November

Baidu speeds up AI progress
Arab Today, arab today Hanan Metawe denies apology for “Major Treason”

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 08:06 2017 Wednesday ,15 November

Ayten Amer happy for “The Flood” success

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 06:13 2017 Friday ,17 November

Pope denounces healthcare inequality

GMT 05:18 2017 Thursday ,16 November

Boeing announces $27bn from flydubai

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday