Hope For Kwacha As Tobacco Market Opens March 11

malawi tobacco farmersSome economic commentators are banking on tobacco sales that will commence in a weeks time to help stabilise the local currency which continues to lose  its value by the day.

The hopes came as The Tobacco Control Commission (TCC) announced that  this year’s tobacco selling market season is expected to open on March 11, 2013.

TCC Spokesperson Juliana Chidumu said on Thursday the selling season would start in Lilongwe on March 11, followed by Mzuzu on March 13.

She said Limbe Auction Floors will open on March 18 while sales at Chinkhoma in Kasungu will start on April 8.

“All is set for the season and we are looking forward to have a good selling season as you are aware that this time around most of the tobacco will be sold through contract following the IPS project,” said Chidumu.

She said as TCC they cannot say anything on the prices but are hopeful that this year’s prices will be good.

Tobacco is regarded a main forex earner  and economic experts hope the sales will help slowdown the kwacha’s fall.

The kwacha has been on a downward trend ever since the Joyce Banda administration adopted a fully liberalised economy of which she claims was an advice IMF and world bank’s  advice .

However the development has resulted in the kwacha losing the value by the day which reflects  on the prices of commodities.

Some experts have always argued that Malawi’s economy can afford a fully liberalised policy.

CAMA’s executive director John Kapito has advised government to at least stop the floatation of the Kwacha and start managing it. But Government has denied such a move while saying they can not reverse the decision.

This lives Malawians hoping for good tobacco sales which could say the kwacha stabilise for a while.

2 Comments for “Hope For Kwacha As Tobacco Market Opens March 11”

  1. Wanda Wanda

    If we sell the tobacco the money will go for payment of loans for fuel that we have been using since april and the other money will go for payment of foreign loans and dividents while Chinese , Burundians and Nigerians will sweep the remainder and by June the MK will be MK1000 to USD1 mark my words not these theories from useless Chuka. People are disinvesting from the market and hence they need dollars. No one can be interested with investing on an instable market. Look at the Zimbabwe scenerio over 10 years. They sell more tobacoo and at good prices and yet their economy never improved but continued to slid downwards until the resolved to use the dollar. TAKE IT FROM ME the Kwacha will be in tatters.

  2. Five Moba

    I would like to the government response on Kapitos demand, and I hope famers will have good sales and have alot of money which will be useless according to the prices of staff, and our currency is just useless now, afamer can have Millions of money, when it cames time of buying fam imputs that money will be nothing.

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