RBM devalues Kwacha by 44%

By Chisomo Phiri

The Malawi’s central bank Reserve Bank of Malawi (RBM) has devalued the kwacha by 44 percent effective today at midnight.

Following the devaluation, the kwacha will be selling at K1, 700 against the US dollar in authorised dealer banks from K1, 180.

In a statement, RBM Governor Wilson Banda says this follows the supply-demand imbalances and mismatch in the exchange rates in the cash and telegraphic transfer markets.

“Spot checks on some market players indicate that the market is able to clear bills at this rate,” says Banda.

The RBM Governor has however, said the bank will closely monitor developments in the market to avoid disorderly behavior among market players that may cause excessive volatility.