Maravi

Kwacha records 70% depreciation

Kwacha records 70% depreciation
Written by Mwiinga Mukuwa
Thursday, January 01, 2009 7:58:58 AM

THE local currency last year (2008) posted a 70 per cent depreciation from its highest level of K3,100 to over K5,000 against the US dollar after the global financial crisis.

Briefing the press yesterday, Standard Chartered Bank head of Financial Markets Stanley Tamele said the major contributor to the depreciation of the local currency was the massive buying of the US dollar by offshore players to fund their US dollar requirements.

“Even the decline in the copper prices also saw so many offshore investors shifting funds to other safer investments,” Tamele said. “The local currency will be expected to be stable which will be opening between the range of K4,800 and K5,000 in 2009.”

He also said 2009 would be a tough year, adding that the major learning points were the worldwide copper prices which in the later part of 2008 had tumbled from high levels of over US $8,000 per tonne to the current US $2,770 per tonne.

“We have seen some job losses in some mines that have cut down on the contractors and suppliers,” said Tamele.

Labels: INFLATION, KWACHA

posted by MrK @ 8:00 AM