Government has dismissed reports suggesting that the current administration of President Peter Mutharika is discussing devaluation of the Malawi Kwacha with the International Monetary Fund (IMF) as part of negotiations for a new Extended Credit Facility (ECF) programme.
In a statement issued on October 8, 2026 and signed by Minister of Information and Communications Technology, Dr. Shadric Namalomba, M.P., government says it has noted with concern the reports circulating that it is negotiating devaluation of the local currency.
The statement makes it clear and unequivocal that devaluation of the Malawi Kwacha is not under discussion with the IMF, stating that it is not an item on the agenda of the current negotiations and that reports suggesting otherwise are incorrect.
Government has further referenced the recent IMF mission which visited Malawi from September 22, 2026 to October 6, 2026, which recognized progress in the country’s economic reform efforts and noted that the reforms provide a good foundation for an IMF-supported program.
According to the statement, the Fund also reported considerable progress in developing the package of policies and reforms that could support a new ECF arrangement, a development government says is geared towards stabilizing the economy.
The administration has reiterated its commitment to addressing foreign exchange shortages, strengthening fiscal discipline, supporting production and easing the cost of living, saying IMF discussions continue towards a programme supporting economic stability and inclusive growth.
Government also acknowledged public concern surrounding the Kwacha, urging citizens, businesses and the media to avoid speculation and rely on verified statements from Government and the relevant monetary authorities.
It has emphasized that the position is clear devaluation of the Malawi Kwacha is not being discussed in the current IMF negotiations.
