The Malawi currency, the kwacha, which has been relatively stable for the past 12 months, has dropped 13 percent against the US dollar, PANA reported on Tuesday. The kwacha lost 68 percent of its value in August 1998 following a US $80 million tobacco sales deficit.
The kwacha has held out at about 44 units to the dollar for the best part of the past 12 months but started sliding slowly at the beginning of tobacco sales in April, it said. "At the beginning of business Monday, it was trading at around 53 to the dollar. Economists say the lukewarm sales of tobacco might not be the only explanation for the slide," it said citing a stronger US dollar.
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