I asked hotel rates in blantyre. After devaluation, the rate in dollars currently exchanged at K167. Will increase by the devaluated percentage.
For instance, the room selling at $35 dollars, and K4000 will increase in cost on the malawian kwacha side, but will remain the same on the dollar side.
The rate at which our earnings are exchanged to foreign currency to buy imports like fuel, will require that we pay much more than we are currently paying, fuel cost, will have to go high.
And due to this increase the cost of everything else, will have to go high.
If all businesses including government increase the salaries of employees, the effect on the citizens might be negligible but if some employing organisations decide not to increase the salaries of the employees, these will suffer the worse effects of devaluation.
While, these so called, economists are speaking, the decision makes are two. The president and the reserve bank governor.
Let these act wise amidst all the noise. For they shall cause indeed a lot of suffering for malawians.
I must not speak this again. It's not worth troubling my mind over if it achieves nothing.
As for me, while I am using a provisional rate of $25 per hour, rounding it up to K3,500 I will necessarily do the same just change the K3,500 to the new devalued rate.
My earning is not limited by a companies decision.
I will have to increase my rate to $75/hour and so for malawian clients, it will be on the hire side. But if I increase my customer base, my earnings are greater than my employed colleagues.
It's high time I found a living for my own I believe.
Wish you the best.