Malawi Kwacha plummets again, by 16% this time

Those who said the Kwacha’s gaining of power was due to nothing but the tobacco being sold at the auction floors were right; actually, were very right.

This time around, the Kwacha has lost its value by a staggering 16 %.
Last week, we posted a story in which an MCP member and the former

President of Farmers Union of Malawi (FUM), Felix Jumbe, predicted a fall in the Kwacha because of bad economic policies followed by the Reserve Bank of Malawi. Further to that, Jumbe called for the resignation of the RBM governor, Charles Chuka, for not advising the government correctly so as to avert a pending economic crisis that has started with the plummeting of the local currency.

The falling of the local currency is mostly followed by an increase in prices of goods and services that eventually hits back on the majority of people who are already finding it hard to make a living following economic reforms that were introduced by the Joyce Banda government with the support of the International Monetary Fund and other donor partners who had been rebuffed by former President, Bingu wa Mutharika.