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The government of Malawi is under pressure from the International Monetary Fund (IMF) to devalue its currency, the Kwacha, once again. This has sparked strong debate both inside and outside the country.
The IMF says Malawi must further lower the value of the Kwacha as part of the conditions for continued financial assistance. This comes just months after the Kwacha lost about 44% of its value in November 2023.
According to the IMF, another devaluation is necessary to stabilise Malawi’s economy, address the shortage of foreign currency, and gain access to additional international funding.
However, critics warn that this would harm ordinary Malawians, many of whom are still struggling from the effects of the previous devaluation.
One unnamed government official stated, “The IMF’s demand comes at the wrong time and will make life even harder for many Malawians.”
Following the 2023 devaluation, prices for basic goods such as maize, cooking oil, and transportation increased sharply. The poorest were hit the hardest, and many now depend on aid to survive.
While the goal of devaluation is to attract foreign investment and improve trade, its impact on daily life has been severe.
