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Former Reserve Bank of Malawi Governor, Dalitso Kabambe, has strongly criticized the recent 44 percent devaluation of the kwacha, deeming it as reckless.
Kabambe asserts that this move will not lead to any economic recovery and will exacerbate the ongoing macroeconomic turmoil.
He predicts that the devaluation will inflict more hardship on the people of Malawi, as prices of essential commodities like fuel, fertilizer, and food are set to rise significantly.
Kabambe also suggests that the timing of this devaluation indicates its link to the International Monetary Fund’s Extended Credit Facility (ECF) conditions.
Furthermore, he believes that, as the exchange rate remains below market equilibrium at K1,700 per dollar, further depreciations are likely to follow.
