Malawians should brace for more hard times as Malawi kwacha has depreciated by 4.7 percent against the US dollar following the foreign exchange auction the Reserve Bank of Malawi (RBM) conducted on Wednesday.
The drop, which is the fourth since January this year, means that the kwacha will now be trading at K1 180 against the dollar from K1 126.
In a statement, RBM Governor Wilson Banda said the forex auction was successful as all Authorized Dealer Banks (ADBs) participated.
He said the foreign exchange auctions are aimed at determining the prevailing market clearing price of the kwacha against the dollar and other major currencies.
The central bank announced in January this year that it would be conducting forex auctions periodically to facilitate the discovery of a prevailing market-clearing exchange rate for the kwacha against major currencies, thereby promoting transparency in the determination of the exchange rate.-NATION ONLINE
