Even when the Malawi Kwacha was appearing to ride high, many economists in the country were warning Malawians to brace for a declining Kwacha as the fundamentals did not appear to support the strength it was exhibiting.
The same Analysts say Malawians should start bracing themselves for tough times ahead as the Kwacha continues a downward spiral against major trading currencies with some saying it is now trading at K600 to one USD and (K806.75 TO A POUND).
While Z. Allan Ntata and loud opposition from critics can be shrugged off easily, a falling Kwacha has the real impact of destabilizing the Malawi Government.
Those with good memories will remember that the riots against Bingu WA Mutharika were attracting big crowds because of long Petro lines and declining economic prospects for many in the country.
Surprisingly this is the season that the Kwacha should stabilize or even appreciate against other currencies when we are selling our major foreign currency earner, tobacco. It leaves all of us worried what will befall Malawians in leaner periods when the auction floors close.
The Heavy rains that caused unprecedented floods and affected crops contributed to poor harvests and can also being choked up as another factor to the Kwacha woes.
Malawi a country that relies on imports will with the depreciating Kwacha, likely to see unmanageable inflation making the people in streets uneasy.
Already, Malawi has recorded the highest and worst inflation figures (at 23%) in the entire SADC region (which has averaged 9%).
World respected Economist Goodall Gondwe has his work cut out for him. However without solutions to stabilizing the Kwacha, The Mutharika government will see its toughest times yet.
