Nankhumwa Visits Mzuzu Main Market
Leader of Opposition (LoP) in Parliament, Kondwani Nankhumwa on Thursday made a surprise visit to Mzuzu Main Market to appreciate the continuous rising cost of goods and services infringing people’s economic wellbeing.
The LoP took his time visiting traders selling different items including: dried fish, beans, groundnuts, vegetables and clothes.
Speaking to the media after the visit Nankhumwa said it is strange that after the Reserve Bank of Malawi announced a slight 2.68 percent devaluation of the kwacha almost the price of every item on the market has gone up.
“The caring government would have considered putting in place fiscal measures that will caution the escalating prices of goods and services, otherwise the situation is at the moment very unbearable,” Nankhumwa said.
However, the LoP refused to comment on the injunction that has restrained the Democratic Progressive Party’s (DPP) National Governing Council (NGC) from holding a meeting stating that the party structures more particularly the office of the Secretary General is in a better position to comment on the matter.
But commenting on his visit to a family in Karonga whose household head was allegedly abducted by officers from the Malawi Defense Force in the wee hours of Tuesday Nankhumwa called for proper procedures when effecting Arrests.
“Indeed I visited the family in Karonga allegedly traumatized considering the manner in which the husband to that lady complaining in that video clip was arrested by officers believed to be from the Malawi Defense Force.
“We are not against the arrests but let proper instruments carry out their constitutionally mandated obligations,” he said.
The Malawi Kwacha (MWK) has marginally depreciate by 2.68 percent, from K1,036 to the United States (US) dollar to K1,063.86, The Malawi Daily Telegraph has established following the second forex auction that the Central Bank of Malawi (RBM) conducted on Monday.
But analysts have described the magnitude of the depreciation as very small, with the Kwacha now selling at an average of K1,600 to the US dollar in foreign exchange bureaux.
In a letter to authorized dealer banks (ADBs) Tuesday, RBM Governor Wilson Banda described the forex auction as successful, saying all ADBs participated.
“As per the bank’s communication from 12th January 2023 on foreign exchange auctions, these auctions will determine the market clearing price of the Malawi Kwacha against the United States Dollar (USD) and other major currencies.
“In this regard, please be advised that, effective, 21 June 2023, the maximum selling price shall be MWK1,063.86 per USD1. Please be reminded that all foreign currencies should be priced according to the 2019 Guidelines for Foreign Exchange Trading Activities,” Banda said.
The setup of the forex auction is that ADBs must bid to sell foreign exchange to the central bank at prices or exchange rates freely determined by each participating bank.
But several economists have doubted as to whether the ADBs really proposed the K1,063.86 rate saying: “Maybe we need to see the bids but I very much doubt the rate,” said one of the economists who did not his identity to revealed.
Financial Market Dealers Association President Leslie Fatch Tuesday said it was good news to see that the second forex auction was successful, considering that the results of the initial auction conducted in January were nullified.
“We hope that alignments due to the auctions will help the market align the rates between the formal and informal market,” Fatch said.
