Malawi Kwacha has long at last been devalued

The former and late President Bingu wa Muntharika had rejected any advice to devalue the Malawi kwacha. He wanted the kwacha to remain fixed to a dollar so prices of goods should be affordable to poor Malawians. The time he died the kwacha was K164 to a US dollar. The IMF World Bank and donor partners failed to sway him to change his position. They stopped aid to Malawi and his regime came up with a zero deficit budget. Malawi struggled to make ends meet. Foreign currencies like US dollar, British pound and South African rand were in serious shortage in banks and exchange bureaus. That lead to the flourishing black market forex business. Companies downsized, folded, or opted to get forex on the black market in order to survive. That read to many people being rendered jobless. Pricess of basic commodities kept rising and the stock rarely available. People queued for things like fuel and sugar daily. The ques were too long and not all those on the ques were able to buy. The death of Bingu led to his vice to take over. So Joyce Banda took over presidency on 7th April 2012.On Monday the 7th of May people woke up to face new exchange rates in the banking halls. The US dollar was trading at K250 mid rate. The Kwacha had been devalued by 49%! By close of business on Tuesday the 8th of May 2012, the kwacha had depreciated to K168 to a dollar. Price tags are changing in the main supermarkets in response to the rate, reasonably or unreasonably. Is it confusion or business tactics? The economic weather has just changed and you will keep updated on other structural changes to happen including the new monetary policies. Donors say will open taps as soon as possible now! Should we hope for better life?