Gwengwe plays down devaluation rumors


The minister of finance, Sosten Gwengwe has on Wednesday, played down rumours of re-devaluation in the National Assembly.

The Chakwera administration devalued the Kwacha in May this year to realign the exchange rate with economic fundamentals as part of the government’s quest to get a new International Monetary Fund (IMF) Extended Credit Facility (ECF) programme and there has been rumours that Kwacha could get devaluated again.

However, Gwengwe said there is no clause of devaluation in Malawi’s deal with the International Monetary Fund under the Rapid Credit Facility.

“If there was any condition to do with devaluation, it was going to be done before the IMF board approved the programme with Malawi.

“Whatever was expected of us was done prior to the approval and once the board approves, it is a done deal,” said Gwengwe.

The devaluation that the Tonse Alliance made in May has affected lives of Malawians as it has propelled the rising cost of commodities.

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