TOBACCO MARKET POSTS $232.26m THUS FAR – Malawi News

As the tobacco market is about to close, figures show that the green gold has sold $232.26 million, which is about 174 billion in local currency.

By the same time during last tobacco season, it was posted that sales amounted to $325,148,330, made from 192.76 million kgs of all tobacco types. Auction Holdings Limited (AHL) Group Public Relations Manager, Teresa Ndanga, attributed the reduced proceeds this year to lower average prices and a higher no-sale rejection rate. According to the Reserve Bank of Malawi (RBM), the closure of the tobacco selling season will not be consequential to the Malawi kwacha exchange rate stability. The latter claim, however, follows reports that have attributed the stabilisation of the local currency to the tobacco sales themselves.

By 31st August, the Malawi Kwacha picked up gaining by 3% against the dollar from K798 to the green buck to K774, before it registered the massive improvement to K758. RBM Spokesperson Mbane Ngwira that attributed the improvement to adequate supplies of foreign exchange reserves, also adding that the tobacco market has picked up.

Speaking to The Nation newspapers in September, Ngwira banked his confidence on monetary authorities who are looking forward to good results from the Extended Credit Facility program review with the International Monetary Fund which starts in a week’s time.