By Twink Jones Gadama
The International Monetary Fund (IMF) has long been advising African countries to devalue their currencies, citing the need to make their exports competitive in the global market. However, this advice has had devastating consequences for the livelihoods of poor Africans. In Malawi, for instance, the kwacha has been repeatedly devalued, leading to a significant loss of value and a subsequent increase in the cost of living.
It is puzzling that Western currencies, such as the US dollar and the British pound, do not face the same pressure to devalue. Instead, these currencies continue to maintain their value and even appreciate against other currencies. This raises questions about the fairness of the global economic system and the motives behind the IMF’s advice to African countries.
One possible explanation is that Western countries have more control over their economic policies and are better equipped to manage their currencies. They also have more diversified economies, which makes them less vulnerable to fluctuations in global commodity prices. In contrast, many African countries rely heavily on exports of raw materials, making them more susceptible to external economic shocks.
Another possible explanation is that the IMF’s advice is driven by a desire to maintain the dominance of Western currencies in global trade. By forcing African countries to devalue their currencies, the IMF may be trying to make it easier for Western countries to export their goods to Africa, thereby maintaining their economic influence over the continent.
Whatever the reasons, it is clear that the continuous devaluation of African currencies is having a devastating impact on the livelihoods of poor Africans. It is time for African countries to resist the IMF’s advice and take control of their economic policies. They must find ways to manage their currencies effectively, without resorting to devaluation. This may require implementing policies to diversify their economies, promote exports, and reduce dependence on foreign aid.
African countries must also work together to create a more favorable global economic environment. They must demand a more equitable distribution of global economic power and challenge the dominance of Western currencies. By doing so, they can create a more stable and prosperous economic future for their citizens.
