Kwacha depreciates against pound, euro
The kwacha remained volatile in April as it lost its value by about 2.29 percent and 2.2 percent against the British pound and the euro, respectively.
Figures from the Reserve Bank of Malawi show that the average middle rate for the kwacha against the pound in April was seen at K1,322.19 compared to K1,292.48 in March.
The local unit was trading at K1,164.41 on average against the euro during the month under review, down from K1,139.27 in March.
However, the kwacha was relatively stable against the dollar, but lost its value by about 0.02 percent to trade at K1,035.05 in April from K1,034.86 in March.
The local unit also depreciated by about 0.6 percent against the rand of South Africa as it was trading at K58.27 in April from K57.92 in March.
Financial market analyst Bond Mtembedzeka said attributing the better footing of the pound and euro to weakening of the dollar on the global market.
He however hinted at a possible continued depreciation of the kwacha in the short to medium terms.
“The outlook is still bleak as there is a huge mismatch in the market. As long as we are importing more than what we are exporting, we will always have the kwacha depreciating,” Mtembedzeka said.
In a recent interview, Financial Market Dealers Association President Leslie Fatch said the local unit remained volatile due to scarcity of forex on the market.
Meanwhile, the kwacha is trading at around K1,030 to a dollar in authorised dealer banks. On the parallel market, the kwacha is trading at K1,550 to a dollar.
