The Reserve Bank of Malawi (RBM) on Wednesday, 8th November, 2023 announced that the exchange rate of the Malawi Kwacha has been adjusted from the selling rate of MWK1180.29 to a selling rate of MWK1700.00 to the US Dollar, promptly plunging already troubled Malawians into despair as they expect, among other consequent pains, prices of commodities to inevitably rise.
In a statement, RBM Governor, Dr. Wilson Banda, informs the public and Authorised Dealer Banks (ADBs) that the 44 percent devaluation is with effect from 9th November, 2023.
According to the statement, the adjustment is due to, among other issues, supply-demand imbalances and a mismatch in exchange rates in the cash and TT markets.
“Supply-demand imbalances remain in the market despite adjustments of the exchange rate through the auction system.
“Arbitrage opportunities have resurfaced in the market due to the mismatch in exchange rates in the cash and TT markets.
“Spot checks on some market players indicate that the market is able to clear import bills at this rate,” the statement reads in part.
It further says RBM “will closely monitor developments in the market to avoid disorderly behaviour among market players that may cause excessive volatility”.
Meanwhile, irate Malawians have taken to various social media platforms to express their dismay at the decision of the reserve bank.