By Workman Lungu
According to official records, three major devaluations of Malawi’s Kwacha have been effected under the second MCP-led regime:
1. 25% devaluation – May 20222;
2. 44% devaluation – 9 November, 20233;
3. 25% devaluation – May 2024
In the press release that announced the November 2023 devaluation, RBM indicated that they will not stop at the 44% devaluation but will periodically auction the Kwacha against other currencies such that at least every week or month that followed from then, the Kwacha was being recalibrated – mostly downward.
The 44% devaluation alone took Kwacha from K1180/$ to K1700/$. Because of the May 2024 devaluation and the monthly auctions, by January 2025, the Kwacha has nosedived to around K3500/$.
Prices of all essential commodities can no longer be stable even for a week – because inflation is cruising at insane Kasiya speeds! All signs and indicators are pointing to the secretly guarded fact that President Chakwera indeed stepped down from power in 2022 after two years elapsed according to his pledge that he would resign if he failed to turn around Malawi’s fortunes. Malawi is officially on autopilot mode!
