Saturday, July 2, 2022
  • About Us
  • ImagiNATION
  • Rate Card
  • Contact Us
The Nation Online
Advertisement
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Columns
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Columns
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
No Result
View All Result
Home Business Business News

Tobacco growers regret kwacha depreciation

by Dumbani Mzale
27/10/2014
in Business News, Front Page
2 min read
0
Share on FacebookShare on TwitterShare on WhatsAppShare on LinkedinLinkedinShare via Email

Tobacco Association of Malawi (Tama), the country’s oldest and biggest tobacco growers’ body, has regretted the timing of the massive depreciation of the kwacha against the dollar, saying such a situation should have happened when the tobacco market was in progress.

“If the depreciation happens when we are selling tobacco, we will not complain. But why do they [monetary authorities] always wait until the selling season ends?

Tobacco grower such as these ones not benefiting from kwacha depreciation
Tobacco grower such as these ones not benefiting from kwacha depreciation

“I know they will always say it’s because of market forces and what have you. But we are not happy as tobacco farmers,” complained Tama chief executive officer Graham Kunimba in an exclusive interview with Business News in Lilongwe last week.

He was reacting to the current sharp fall in the value of the local currency against other major foreign reference currencies, notably the dollar in recent weeks. As of Friday last week, the local unit had plummeted to trade above K450 in most authorised dealer banks (ADBs), probably the worst highest rate since last year during the same period.

The situation is even worse on the parallel foreign exchange market, as some dealers are selling the kwacha to a dollar at K475, prompting economic analysts to predict that the kwacha is likely to hit an all-time record of K500 to the dollar by December as the lean season drifts.

“When we were selling our tobacco, the kwacha was selling at K390 to K400 against the dollar. But now, the kwacha has actually depreciated to a level where we did not anticipate and basically you can see that tobacco is the main driving force behind the sustainability of our currency in Malawi,” said Kunimba.

Tobacco Control Commission (TCC) chief executive officer Bruce Munthali yesterday said the commission also shares the concerns raised by tobacco growers, saying the regulatory body had already channelled the concerns to the Ministry of Agriculture, Irrigation and Water Development as well as the Reserve Bank of Malawi (RBM).

He said TCC could have loved if authorities were controlling the movement of the kwacha, especially during the tobacco marketing season.

Recently, RBM Governor Charles Chuka downplayed the general outcry on the weakening of the local currency, arguing there is no need to worry and panic.

Tags: DepreciationMalawi KwachaTTamaTobacco
Previous Post

Son to Malawi’s Kenya diplomat killed

Next Post

E-payments reduce transaction costs—RBM

Related Posts

Any type of farming is facing fertiliser price hikes
Business News

World Bank speaks on commodity prices

July 2, 2022
AIP beneficiaries buy inputs in the previous season
Business News

Fertiliser price hikes worry farmers

July 2, 2022
Business News

Ecobank takes digital payment solution to shop owners

July 1, 2022
Next Post

E-payments reduce transaction costs—RBM

Opinions and Columns

My Diary

God-fearing nation, my foot!

July 2, 2022
Off the Shelf

APM digging a hole for DPP

July 2, 2022
Guest Spot

‘Fighting corruption is not the easiest task of any govt’

July 2, 2022
My Turn

Following spouse is no crime

July 1, 2022

Malawi-Music.com Top10

Trending Stories

  • Entrance to one of the VP’s official residences in Blantyre: Mudi House

    New VP houses draw criticism

    0 shares
    Share 0 Tweet 0
  •  Malawi credit Status at risk

    0 shares
    Share 0 Tweet 0
  • Britain squeezes Zuneth Sattar

    0 shares
    Share 0 Tweet 0
  • 4 DPP MPs disown Nankhumwa injunction

    0 shares
    Share 0 Tweet 0
  • Malawi, Zambia discuss Susu handover

    0 shares
    Share 0 Tweet 0

  • Values
  • Our Philosophy
  • Editorial policy
  • Advertising Policy
  • Code of Conduct
  • Plagiarism disclaimer
  • Disclaimer
  • Privacy Policy
  • Terms of use

© 2022 Nation Publications Limited. All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Columns
  • Sports
  • Chichewa
  • Enation

© 2020 Nation Publications Limited. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.