Malawi devalues kwacha by 33%, leading to panic-buying - 5/7/12



Shoppers in Malawi have been scrambling to buy basic goods, fearing huge price rises after the currency was devalued by 33%.
The BBC's Raphael Tenthani in Blantyre says that many shops had run out of staple foods such as sugar, cooking oil and bread by the end of Monday.
The kwacha was devalued as part of moves by the new government to restore donor funding.
The former government had rejected IMF calls to devalue the currency.
Our reporter says that other goods such as rice, maize flour and orange squash were running short in Blantyre's Chichiri shopping centre - the main retail area in Malawi's biggest city.
He has been told that the same panic-buying is also happening in Malawi's main towns.
The scramble comes despite economists saying they did not expect the devaluation to immediately lead to higher prices, as many businesses were expecting the move and were already using the new exchange rate.
The central bank announced that one dollar would now be worth 250 kwacha, up from 168, while the peg to the US currency would be scrapped.
"The devaluation of the kwacha and the liberalisation of the foreign exchange market are expected to continue the government's efforts to reach agreement with the IMF," said Reserve Bank of Malawi Governor Charles Chuka, adding that this would hopefully lead to more donor funding in the next few months.
The International Monetary Fund has long urged Malawi to cut the value of its currency, saying this would boost exports and reduce demand for imports.
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Revelation 6:
1And I saw when the Lamb opened one of the seals, and I heard, as it were the noise of thunder, one of the four beasts saying, Come and see.
2And I saw, and behold a white horse: and he that sat on him had a bow; and a crown was given unto him: and he went forth conquering, and to conquer.
3And when he had opened the second seal, I heard the second beast say, Come and see.
4And there went out another horse that was red: and power was given to him that sat thereon to take peace from the earth, and that they should kill one another: and there was given unto him a great sword.
5And when he had opened the third seal, I heard the third beast say, Come and see. And I beheld, and lo a black horse; and he that sat on him had a pair of balances in his hand.
6And I heard a voice in the midst of the four beasts say, A measure of wheat for a penny, and three measures of barley for a penny; and see thou hurt not the oil and the wine.