Banks shun RBM Kwacha Auction

..we have no forex- Banks

The Reserve Bank of Malawi has failed to release the results of the first auction of the Malawi kwacha, as on three of the countries eight commercial banks submitted bids.

The policy which has been dubbed “devaluation excuse” has faced criticism from majority of economists saying Malawi does not have exports to generate the much sought green bucks.

Governor Wilson Banda revealed that the auction only attracted three banks and they have gone back to consult banks to encourage them to participate at the next auction.

An insider said one bank offered to sale the dollar the black market rate of K1500 which would have confirmed that the currency has lost its value to the dollar.

“It’s sad the whole RBM could not see that nobody has foreign exchange this time as we are not exporting anything. Tobacco, tea and other products are seasonal,” reasoned an economist.

Banda has not indicated whether the policy will be abandoned or pursued. 

Political commentators say the Government was trying to mask devaluation with the auction and now it will be embarrassed with its inability to run the auction.

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