By Rahim Abdul
United Democratic Front (UDF) President Atupele Muluzi has warned that the growing shortage of foreign currency in Malawi has forced many businesses to abandon official bank exchange rates and rely on parallel market dollar rates when pricing goods and services.
The leader of the United Democratic Front said although banks are officially selling the United States dollar at around K1,800, the currency is no longer easily accessible through formal financial institutions.
According to Muluzi, the situation has created a hidden economic crisis where traders and importers are buying dollars from illegal forex markets at nearly K4,000 per dollar in order to continue operating their businesses.
He explained that companies importing fuel, spare parts, machinery and other foreign goods are now calculating prices based on the black market exchange rate, a move that is directly pushing up the cost of living for ordinary citizens.
Muluzi said many Malawians may not realize that the prices they are paying for goods today are already reflecting the unofficial value of the Kwacha rather than the rate announced by banks.
He described the gap between the official and parallel market exchange rates as proof that the country’s economic challenges are becoming more severe.
The UDF leader also claimed that current economic recovery strategies are failing to ease pressure on citizens and instead worsening hardships among low-income families and struggling entrepreneurs.
He stressed that businesses cannot survive in an environment where access to forex is limited while operational costs continue increasing every day.
Muluzi further called on government to engage business operators and farmers in shaping economic policies, saying they understand the realities affecting production, trade and food security.
He warned that without a functioning business environment, government risks losing significant tax revenue because companies are already operating under pressure or scaling down operations.
The former cabinet minister also blamed some past economic reforms for contributing to the country’s current instability, saying poor policy decisions made over the years weakened Malawi’s economic foundation.
His remarks come amid growing public concern over soaring prices of fuel, food and imported products as the country continues battling foreign exchange shortages and inflation.
