Tag: Finance

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 whic...