The National Working Group on Trade Policy says the latest strikes by Government to manage costs of some commodities are indicators of a failed financial administration.
The group’s Chairperson Frederick Changaya was reacting to the transfer by the Competition and Fair Trading Commission (CFTC) to cease 9 corporations from elevating costs.
On Tuesday CFTC issued interim orders to 9 farm enter distribution corporations and two poultry feed producers ordering them to stop and desist from participating in extreme pricing and unconscionable comduct.
However, Changaya argued that pricing traits are a mirrored image of a run away inflation worsened by international change scarcity.
He warned that value controls could lead on companies into losses because the authorities just isn’t controlling the price of working the enterprise, particularly foreign exchange.
Said Changaya: “You can not management the output aspect of the enterprise whereas leaving the enter aspect liberalised. That could be unfair.
“People don’t know the exchange rate tomorrow. Today you buy a dollar at K3 250, tomorrow you buy it at K3 500. Even if you don’t buy dollars, next day since they aren’t readily available, economic players do hedging”.
Changaya, a former Reserve Bank of Malawi (RBM) Monetary Policy Committee member, stated the options lie in crafting responsive financial and financial insurance policies.