The move aims to align the official exchange rate with the parallel market rate, where the kwacha has been trading at a much lower value. The central bank hopes that the devaluation will boost exports and attract foreign exchange inflows.

However, some consumers fear that the devaluation will lead to higher prices of essential goods and services, as Malawi relies heavily on imports. The new exchange rate is 1 700 Kwacha per US Dollar, up from 1 1 800.

--ChannelAfrica/Reuters--