Sunday, November 27Malawi's top news source

25% Devaluation Necessarily Evil- Gwengwe

Share news to your friends

Minister of Finance , Sosten Gwengwe has today told Parliament that the 25 percent devaluation effected two months ago was a necessary evil which has saved the country’s economy from collapsing.

Gwengwe argued that without devaluing the kwacha, the country could have plunged into a fuel crisis similar to the one experienced in 2012.

Said Gwengwe: “We had to make a decision. We were between a rock and a hard place. Otherwise, the Reserve Bank of Malawi wouldn’t have been able to buy forex from the local market to support Nocma [National Oil Company of Malawi] to purchase fuel. Devaluation was better than plunging the country into a fuel crisis.”

Gwengwe`s remarks came during a debate on a bill concerning additional financing for Malawi Social Support for Resilient Livelihoods which seeks to borrow K193 billion to increase social cash transfer packages and beneficiaries.

Democratic Progressive Party member of Parliament , Ralph Jooma, had earlier made an observation that the bill was tabled late in the House saying it will be impacted by the devaluation which has led to increase in prices of essential commodities.

Related News

In order to respond to the immediate needs in areas that experienced heavy rainfall and strong winds that resulted in Read more

World Consumers Rights Day: CAMA for tangible digital financial platform

. The country is to join the rest of the world in celebrating World Consumer Rights day which falls on Read more

Truck drivers’ strike resumes March 21

```RESOLUTE—Ayuba James (centre) and PDU members Professional Drivers Union (PDU) has announced the resumption of a nationwide strike from March Read more

Chakwera delegate Muluzi to represent Malawi at the burial of Rupiah Banda

Former President Bakili Muluzi has described as an honor a decision by President Lazarus Chakwera to delegate him to represent Read more

Matola To Name And Shame DPP Gurus Siphoned Fuel At Escom

Minister of Energy Ibrahim Matola insists he will name and shame DPP gurus who were siphoning fuel at ESCOM. According Read more

Govt Is Slow On Israel Embassy

Despite stating its intention to open a diplomatic mission in Israel, government has not appointed diplomats for the mission. The Read more

Cooking Oil Companies To Reduce Prices

Players in the cooking oil industry have expressed commitment to reduce prices of the commodity effective 1st April this year. Read more

Malawi Legislators Slums Judiciary For Interference.

Members of Parliament (MPs) have raised concerned over judicial interference on the house’s decisions and deliberations. Government Chief whip of Read more

Abida Mia says flood victims need more support

Written by MFN Reporter Continued support for flood victims will greatly assist those affected during their time of need towards Read more


The Minister of Water and Sanitation, Abida Sidik Mia, held a meeting with the SRWB on the 18th of March, Read more

Leave a Reply

Your email address will not be published. Required fields are marked *