Advertisement
Business

Kwacha still losing grip

Advertisement
Ben Kalua

The Kwacha continues losing value against major foreign currencies as it depreciated against the United States dollar, British Pound, Euro and Rand last month.

Figures from the Reserve Bank of Malawi (RBM) show that, in June 2021, the Kwacha was trading at K806 to a dollar from K800 in May and K1,190 against the pound from K1,181 in the preceding month.

The figures further indicate that, in the month under review, the local currency lost value against the Euro trading at K1,040 from K1, 038 in May and while the Rand was trading at K62 from K61 in the preceding month of May.

Advertisement

Commenting on the figures, University of Malawi economist Laston Manja attributed the Kwacha volatility to low exports for Malawi as trade patterns continue to be affected by the Covid pandemic.

He said the future looks bleak as the country will have to import more medical and agricultural products in the short to medium terms.

“We are soon entering the agricultural farming season where government and individuals will have to import a lot of fertiliser and, as the Covid pandemic is in its third wave, the country will import more medical equipment against our small export base so I do not see the situation changing,” he said.

Advertisement

Professor of Economics at University of Malawi Ben Kalua said it was high time Malawi diversified its export base.

“By the end of the year, we should have found advanced avenues of imports such as cannabis which has proved to be helpful in other countries which have started cultivating it,” he said.

Malawi is a pre-dominantly importing and consuming nation, highly depending on exporting raw agricultural products.

Advertisement
Tags
Show More
Advertisement

Related Articles

Back to top button
Close

Adblock Detected

Please consider supporting us by disabling your ad blocker