Sales and most capex would be transacted in USD, so not really much impact from those fronts. Opex where the local labour force is involved will almost certainly be Kwacha though so if anything, this would work slightly in favour for Lotus - local wages (Kwacha) gets cheaper relative to the revenue from sales (USD) given the absolute number values stay the same (kwacha/hour and lbs/USD).
Generally a weak local currency works makes exports more profitable and vice versa (see Russia's recent predicament with the steep appreciation of the rouble's as a counter example).
The tragedy here is mainly that the purchasing power of the locals decrease quite dramatically for imported goods and will likely reduce their standard of living.
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- Malawi devalues Kwacha by 25%.Thoughts?
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