Less than a month after the death of Malwa’s president Bingu wa Mutharika, new president Joyce Banda is already on the helms of taking over the country’s financial woes.
Malawi’s Central Bank has scrapped the kwacha’s peg to the dollar. This will allow the market to dertermine the currency’s exchange rate.
The kwacha officially trades at about 165 to the US dollar, but trades at nearly double that rate on the black market.
The call to devalue the kwacha was made by the International Monetary Fund which has had its butt in the country’s affairs for years. It says this move will help reflect the currency’s true value and make the economy more competitive.
Some economists seem to agree, saying commerical banks are selling the kwacha at 250 to the greenback, above the rate of 165 and closer to the black markets rate of about 275.
So to those of you planning to travel to the country anytime soon, it may be best for you to just go the official route in getting your exchanges done although the black market is still slightly attractive, it is also volatile.
Lets hope Joyce can handle Malawi’s economic issues and not have a heart attack as the previous president did.