Expert encourages government to practice financial prudency

By Mabuchi Chunga

An economic commentator has urged the government and the Reserve Bank of Malawi to exercise financial prudence in economic planning if the country is to maintain the current trend of the local currency.

The economist, Gilbert Kachamba, from the Catholic University made the remarks the current trend of stability that the Kwacha has shown in the last quarter of the year 2019 and the beginning of this year.

Kachamba said there are various factors that contribute to the stability of the currency such as donor aid but also the government’s expenditure habits.

He further said that at this point the government should put up policies that will create trust with the donor community to ensure a good flow of funds.

He also said that monetary policies instituted by government should show good financial traits.

“With financial prudency we can manage to contain the kwacha,” said Kachamba.

The Malawi kwacha has been stable for most part of the last quarter of the year 2019 where it finished trading at an average of 740 kwacha by December.

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