Malawi national currency devalued


To help address macroeconomic challenges, the Reserve Bank of Malawi devalued the national currency, the Malawi kwacha, by 44 percent in early November 2023; as of 24 November, the Malawi kwacha was trading at MWK 1 685/USD 1, compared to MWK 1 116 in late October. This devaluation is expected to amplify inflationary pressure and already triggered an increase in pump prices of petrol and diesel by 45 and 42 percent, respectively, earlier in the month. These developments come amid already high inflation rates - headline annual inflation was estimated at 27 percent and the food inflation rate at 35 percent in October. These elevated levels are straining households’ resources and are key factors that have intensified acute food insecurity in 2023, with an estimated 4.4 million people in need of humanitarian assistance.

Country: Malawi