Malawi Opposition fumes over 44% kwacha devaluation
Democratic Progressive Party (DPP) and United Democratic Front (UDF) have faulted President Dr. Lazarus Chakwera’s administration for devaluing Malawi Kwacha.
The two parties were responding to the Mid-Year Budget Review statement presented in Parliament by Minister of Finance and Economic Affairs Simplex on Wednesday.
In his response, DPP’ Ralph Jooma said government was quick to devalue the kwacha before putting in place immediate cautioning measures to protect the vulnerable citizenry.
“This devaluation was not done appropriately. It will not achieve its purpose of redirecting forex to the formal market,” said Jooma, who is DPP’s Opposition spokesperson on finance.
He further faulted government for increasing the price of fuel immediately after the devaluation saying it had set the tonne for other traders to increase prices of commodities.
On his part, UDF’s spokesperson on Finance smail Rizzq Mkumba urged government to revise its policies to ensure that the grant financing released by international financial institutions (IFIs) trickles down to small and medium enterprises.
The lawmaker said the recent devaluation of the kwacha, which has seen the kwacha depreciate by 44 percent and trade at K1 700 to the dollar, has limited SMEs access to forex.
He, thus, urged the government to create avenues to ensure that SMEs have access to forex to continue their business operations which he said are essential to promoting local economic growth.
In a statement, RBM Governor Wilson Banda said the 44 percent devaluation followed the imbalances as well as the mismatch in the exchange rate in cash and telegraphic transfer.
The kwacha was also devalued by 25 percent in May 2022 and since January this year; the local unit has depreciated by 13.1 percent.
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