KWACHA ‘REAL VALUE’ NOW AT K4,000 PER DOLLAR — ATUPELE MULUZI WARNS OF DEEPENING ECONOMIC PAIN
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United Democratic Front, President Atupele Muluzi, has claimed that the Malawi Kwacha has effectively lost value to the point where one United States dollar is now trading at around K4,000 on the parallel market.
Speaking on the worsening economic situation, Muluzi argued that while commercial banks officially maintain the exchange rate at around K1,800 per dollar, the reality on the ground is completely different because foreign currency is scarce and difficult to access through formal channels.
According to Muluzi, importers and business operators are now relying heavily on black market forex traders to obtain dollars needed for international transactions, pushing the real market value of the Kwacha far beyond the official exchange rate.
He said the consequences are already being felt across the country as prices of imported goods continue rising sharply, especially fuel and essential commodities purchased from foreign markets.
Muluzi observed that businesses are now calculating prices based on the unofficial exchange rate, a development he described as the “true reflection” of the country’s economic condition despite official figures suggesting otherwise.
“This is the reality we must accept,” said Muluzi, while warning that ordinary Malawians are carrying the burden of rising costs of living triggered by forex shortages and inflationary pressures.
The UDF leader further criticized ongoing economic recovery measures being implemented by authorities, saying the policies are only increasing suffering among citizens instead of bringing relief.
He argued that many small and medium-scale businesses are struggling to survive due to unstable market conditions, reduced purchasing power and rising operational costs linked to the weakening local currency.
Muluzi also urged government authorities to pay attention to concerns raised by the business community and farmers, saying they are central to economic growth and national development.
According to him, government cannot expect to collect enough tax revenue when businesses are collapsing or failing to operate efficiently because of harsh economic conditions.
He added that some economic reforms introduced by previous administrations also contributed to damaging the country’s economic stability, creating long-term structural challenges that continue affecting Malawi today.
The remarks come at a time when Malawians are increasingly expressing concern over rising commodity prices, shortages of foreign currency and the widening gap between official exchange rates and rates offered on the parallel market.
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