The opposition’s continued attempts to undermine the government appear to be failing once again. After spreading baseless rumors that the Malawi Energy Regulatory Authority (MERA) was planning to hike fuel prices—an allegation swiftly dismissed as a hoax—opposition figures are now claiming the International Monetary Fund (IMF) has instructed the Ministry of Finance to devalue the Malawi Kwacha by 60 percent. However, the Reserve Bank of Malawi (RBM) has categorically debunked this as false.
In a statement issued Thursday, RBM Governor Wilson Banda reaffirmed that there are no plans to devalue the local currency.
“The general public is reminded to seek information on monetary policy matters from the Reserve Bank of Malawi. The bank urges the public to refrain from creating and circulating false reports that cause unwarranted speculation, panic and uncertainty in the economy,” the statement read.
Financial Market Dealers Association President Leslie Fatch emphasized that such reckless speculations fuel market panic and exert undue pressure on the Kwacha. He pointed out that in a regulated financial environment, any adjustments to the exchange rate are communicated through formal channels.
“With demand already high, these rumours prompt importers to urgently seek forex clearance for their bills, anticipating an exchange rate increase,” he noted.
Fatch highlighted the introduction of the foreign currency auction as a tool for regulating the exchange rate, ensuring that any necessary adjustments reflect genuine market conditions. He reiterated that if there is any need for currency movement, it will occur through the established RBM auction mechanism.
The opposition’s latest claims come in the wake of previous devaluations: a 44 percent adjustment in November 2023 and a 25 percent devaluation in May 2022. However, the RBM’s firm stance on the matter quells any immediate concerns of further currency devaluation.
