Malawians React To Devaluation Of Kwacha

Following the announcement made by Reserve Bank of Malawi (RBM) on Thursday, 27 May 2022 that Malawi Kwacha has devalued by 25%, Malawians have expressed shock over the news.

The development which has come after the government had talks with the International Monetary Fund (IMF) starting on Wednesday,25 May 2022 in Lilongwe City.

According to Rose Hollah, LUANAR Student said the development has come when Malawi’s economy is already weakened by the Covid-19 pandemic and the commodities are high.

“I have seen and read the statement that the Reserve Bank has released, there is a condition which says Malawi’s local currency should be devaluated in order to support country’s effort,” she said.

Hollah said the devaluation will have more impact on the less privileged people in the country who are hand to mouth and that people in the country should expect the rampant growth in the commodity prices in days to come.

Harriet Banda, a Civil servant said government has managed to increase the salaries of all the civil servants in the country with 12% but the Reserve Bank of Malawi has devalued the nation’s currency with 25% which is a big blow to the economy of the country.

“Imagine having 20,000 kwacha will mean you have 15, 000 kwacha in reality which is very bad, we will continue to be poor in this country,” said Banda.

Mayamiko Yusuf, a second hand clothes dealer in Limbe Township said the 25 % devaluation of Kwacha is a big punch on her business, it is either she will go down or else she will not have the energy to sustain it.

“All I can say is that we are in hot deep soup with the 25% devaluation, we need to push hard in this life in order to survive, without pushing hard definitely most of the businesses you are seeing today will fail,” she concluded.

RBM Governor Wilson Banda has refused to disclose details of the discussion between the Malawi Government and IMF.