26 Mar 2013
348pm Illinois time 1048pm in Malawai
Current Politics and Economy in Malawai. Joyce Banda is President. She was VP unti about a year ago when the President died. However, she was of group opposing many of Presidents policies and dead Presidents followers tried to keep her from succesion.
She, however, prevailed. I believe she is in Washington DC this week. One of her early actions was to allow the Malawain currency to float with the market. When she took office, the Malawain Kwacha was around 150 per US$. When she took action, the Kwacha(MK) went to 267 immediately and today is just short of 400 per dollar. She is taking grief over this. However, it was thought to have been long overdue. Joyce Banda has the same last name but is not related to a president dicator named Banda who ruled autocratically for approx 35 years.
Has been good to be in the warm in Malawai. Have spent two days in ACE offices going over reports of activity, procedures, challenges with the Warehouse receipt system. Wednesday and Thurs will visit two warehouses. Will be glad to get out to the country.
Agriculture has no forward pricing system. White maize is a staple and excess over food needs is sold for cash. So there is an imputed value. Soy and other crops however, are grown for cash and there is a reluctance on part of producer to producer without market, to borrow money for inputs, and banks are reluctant to loan without knowing the value of what they loan. So, a forward pricing system of some fashion is needed for any appreciable growth.
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