malawi devalues currency by third
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
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

 



GMT 09:00 2018 Wednesday ,12 December

May tours Europe in desperate bid to save Brexit deal

GMT 09:47 2018 Monday ,10 December

Russian ex-policeman convicted over 56 murders

GMT 09:12 2018 Wednesday ,12 December

Ford trains 1,600 motorists in Mideast, Africa in 2018

GMT 13:29 2018 Friday ,14 December

Turkey targets military over alleged Gulen links

GMT 10:03 2018 Monday ,10 December

23 Palestinians arrested in West Bank

GMT 15:46 2018 Wednesday ,12 December

Festive Fashion by Dubai-based designer ASMARAÏA

GMT 14:30 2018 Friday ,07 December

Major oil producers haggle over production cut

GMT 02:14 2017 Wednesday ,25 October

Oct24/Nov22
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

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday