The Kwacha to Unites States (US) dollar rate on the black market has been seen fluctuating, with recent figures showing that the greenback is being sold at K3,200.
This represents a 6.6 percent jump within four days when compared to the K3,000 rate the dollar was selling at on Monday this week.
However, the official rate has remained stable, at K1,750. Speaking on condition of anonymity, one of the black-market operators said the move in the price was due to suppliers offering high rates.
In an interview, Financial Market Dealers Association President Leslie Fatch said the general view was that price was determined by market forces.
He was quick to say unlike the formal market, which is regulated, there was a high chance that the informal market would have high volatility and fluctuations as it was not regulated, hence the reported movements.
“Besides the legal instruments that may be utilised by the authorities to address illegal trading or hoarding, fundamental is ensuring there is liquidity in the market to address the supply side,” Fatch said.
Reserve Bank of Malawi (RBM) spokesperson Boston Maliketi Banda said the central bank was developing a comprehensive package of measures to combat black-market activities and boost export capacity.
“You will notice that the recent fluctuations in black-market exchange rates are largely driven by speculative greed, leading to price increases that harm everyone.
“This is the reason we appreciate the support from the public in reporting these illegal activities to the central bank and law enforcement agencies to help us to address this vice,” Banda said.
Last week, government officials announced that RBM would support some critical sectors such as the importation of second-hand clothes and cooking oil with cheap dollars as one way of curbing the sharp rise in consumer prices.
0 Comments