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Malawi devaluation expected ahead of IMF deal

Malawi devaluation expected ahead of IMF deal
 
Reuters/Eldson Chagar

Malawi's President Joyce Banda, who took office at the start of April, has described the country's economy as a total mess. Malawi is expected to devalue its currency to help negotiations with the International Monetary Fund, which is considering a request for a new financing programme. But will a currency devaluation kickstart the economy? What does it mean for the country's IMF programme? And will other donors remove the freeze on their funding? Yvonne Mhango, who is Renaissance Capital's sub-Saharan Africa economist, gives some answers.


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