Malawi forex reserves still below 3 months cover

The Reserve Bank of Malawi (RBM) says gross official reserves for the country were at $343 million as of  last week.

Some analysts say the status of foreign currency reserves shows a positive trend that most economic reforms that government is implementing are responding to market dynamics.

However, the $343 million only covers 1.8 months of imports below the recommended 3 months.

Malawi import needs in costs have been increased since last year to $188.1 million per month from $129 million.dollar

The forex reserves stability has been attributed to flows from tobacco sales and donor money.

This has led to the stability and of late the appreciation of the Kwacha against the US dollar.

Last week, published exchange rates showed that the kwacha banks and foreign exchange bureaus are buying the dollar at around K315 and selling it at about K340.

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