By Pemphero Malimba:
The United States (US) dollar has hit K4,000 on the black market, up from K3,000 at the beginning of last month, as pressure on the Kwacha continues to mount, The Daily Times has established.
A snap survey conducted Thursday revealed that while the greenback was trading at an official rate of K1,751, black market operators in Blantyre were buying the dollar at an average price of K3,700 and selling it to desperate buyers at an average price of K4,000.
The situation was a bit softer in Lilongwe, where the operators were buying the dollar at an average price of K3,650 and selling at an average price of K3,800.
One operator in Lilongwe justified the price, attributing it to the market forces of supply and demand.
“It’s the market that is determining the exchange rate. It’s not rocket science that the dollar is scarce but demand remains elevated. So, we are just selling at the equilibrium price,” he said.
Reserve Bank of Malawi (RBM) spokesperson Mark Lungu was not immediately available for a comment Thursday.
But Financial Market Dealers Association (Fimda) President Leslie Fatch Thursday said the disparity in the exchange rate in the formal and informal market could be attributed to the mismatch in supply and demand.
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