Malawi announces devaluation of Kwacha

The Reserve Bank of Malawi has announced a 25 percent devaluation of the Malawi Kwacha effective May 27th.

In a statement released by the Governor Dr. Wilson T. Banda, the Bank is aware that an exchange rate path cannot be predicted or determined without considering prevailing market factors.

“In the short term, the Kwacha exchange rate adjustment process may add pressure on inflation but we are committed to prudent monetary and fiscal policies in order to contain all inflationary pressure within manageable limits,” Dr. Banda said.

The bank says the rising commodity prices and the Russia Ukraine War coupled with Cyclone Ana and Gombe has worsened situation in the country.