BLANTYRE, 9 January 2013 (IRIN) – International Monetary Fund (IMF) Managing Director Christine Lagarde urged Malawians to stick with tough economic reforms during a recent three-day visit to the country, but measures recommended by the Fund and implemented by President Joyce Banda have been deeply unpopular with many citizens who can no longer afford basic goods and services.
Key among these measures was Banda’s decision, made soon after she took office in April 2012, to devalue the Malawian kwacha by 49 percent and untie the currency from the US dollar. The government also lifted subsidies and price controls on fuel.
The moves were designed to address chronic shortages of foreign-exchange reserves and key imports such as fuel, but they also triggered rapid inflation, which remains at 33 percent. Continue reading “MALAWI: “A Long and Hard Road Ahead””
