Malawi kwacha extend gain against US dollar

Recovering from a free-fall since September  2014 when tobacco sales closed,  the Malawi kwacha has extended its gains of against the US dollar buoyed by minor export proceeds from some of the country’s commodities.

Kwacha

Kwacha

Kwacha is now trading at around K470 against the dollar, according to the central banl, but is trading between K480 and K496 against the dollar in some authorised dealer banks (ADBs).

In his State of the Nation Address last week, President Peter Mutharika said now that the kwacha has since stabilised, the currency may even appreciate soon, “because we are doing everything possible to get the economy on the right track.”

Mutharika said; “Government has put in place policies that will translate into increased exports to increase foreign exchange earnings.”

Reserve Bank of Malawi (RBM) financial market development report this week shows that gross official reserves—foreign reserves under the direct control of the central bank—are now at $586.11 million, an equivalent of 3.07 months of import cover.

The  private sector reserves—foreign reserves under the direct control of consisting of ADBs own forex position and foreign currency denominated account balances of clients—were recorded at $345 million or 1.81 months of import cover.

Malawi is now sitting on forex reserves amounting to $931.24 million or 4.88 months of import cover.

Minister of Finance, Economic Planning and Development Goodall Gondwe said he Development Cooperation Strategy (DCS) which government launched  recently will act as one of economic stimulation measures for elimination of poverty and resurgence of economic growth.

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80 thoughts on “Malawi kwacha extend gain against US dollar”

  1. tum sg says:

    then y is it that the government is failing to pay teacher for 9months now what is the presidents ideas on teachers welfare? Hw r we going to help malawi hw r we going to improve educcation quality?

  2. mike says:

    iweyo akuuza ndi ndani, wangoti aku reserve bank. is ur info reliable? anyway, peter can woke up tommorow and declare kwacha to be at k100 to $1 so this is not something i think should bother iweyo, ukuona bwa?

  3. masa masina says:

    The question is, what is it Malawians have done/produced/sold that has contributed to the value gain of the kwacha against the dollar?

  4. Jacob Phiri says:

    Its a good thing for locals to hear.

  5. If Not Tobacco? What Nex?

  6. chimwemwe chimtengo says:

    zili bwino tingolemekeza ambuye basi.

  7. Wamandasi says:

    keep the fuel price unchanged to cushion mk

  8. Hohohohohohohho a Malawi kumvetsa chisoni,anthu ofuna kumangomva zonunkha zokhazokha,anthu osafuna kumva zabwino,anthu ongofuna kuti zabwino zizichokera kwa inu,anthu ochitira nsanje dziko lanu lomwe,kuyipa ndi nkhope yomwe ,mmalo mopempherera komanso kuyamikira ngati kwacha yayamba kuchita bwino pa dollar mwayamba kutokota za ziiiiiiiiiii,Nsanje idzakuphani komanso Simupindula nazo mukhala pomwepo,Mulungu sangasekerere anthu osafunira dziko lawo zabwino,ndipo adzakukanthani ndi matenda osadziwika bwino mukamufunse Mwakasungula

  9. chakwanuleka says:

    Malawians will keep getting a raw deal. First of all you must understand that it is the Reserve Bank that determines Foreign Exchange rates in the country. They dictate what rates the banks must be trading at (called a middle rate) and the banks load a small margin for their profits. When there is general forex shortage the determination of the middle rate is the average rate at which banks have been sourcing dollars from the local market such as exporting companies. So you can notice that without any changes in fundamentals, the big brother can reduce the middle rate and everybody in the market follows suit. Coupled with the fact that this is a lean period in which people generally have little disposable incomes, demand for forex is at the lowest level.
    High taxes is another deterrent for people to access forex. You can observe how people are shunning from importing vehicles lately compared to the past few years.
    An improvement in foreign exchange will always translate in more improved international trade as prices of foreign goods compare favourably with those on the local market. Can anyone attest to this fact in the past few months. If not, ask yourself why?

  10. Big brain says:

    Wakwiya ndi thumbuka ki ki ki koma khaki niyomweyo

  11. Thyolo Thava says:

    APM woyaaaaaaaaaaaaaaaaeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee

  12. Mirella K says:

    4.88months foreign input cover??? Abale, I can’t rememer Malawi sitting on suvh foreign reserves for the past 20 years!

  13. jupiter says:

    aaaaaaa…….CHINESE gain,come february and restore a cry…..

  14. Yetson Nkhoma says:

    DPP imene ndimaidziwa ine ndimeneyo pa chuma sizamwana.Things will be better in 2015 no doubt about that.

  15. Eco101 says:

    So good to be true. Here are the basic fundamentals of appreciation of a currency. A currency appreciates when the supply of foreign currency surpasses the demand; in this case where the supply of the dollar on the market is more than what is demanded, the Kwacha appeciated. For an agro based economy like MAlawi that hugely relies on tobacco ( with manufacturing and mining coming close) one wonders how the currency is appreciating in the absence of a favourable balance of payments ie having more exports than imports in value especially this time around when the tobacco season is closed and there isn’t significant improvements in the other sectors of the economy, combined with the recent surge in the demand for forex for the FISP. Something not adding up, on the macro economics fundamentals, unless somebody is massaging the figures, just a the budget was once recently cooked with MRA bogus revenue figures

    1. Gunz says:

      Eco101. Figures are available for you to see. Daily financial market developments found on RBM website report purchases and sales of FX by banks which represent demand and supply. You don’t seem to know the dynamics in fx market in Malawi well enough. Check how much inflows of FX this country receive per year, it’s way above tobacco inflows by about 6 times. Tobacco is not the main source of FX in Malawi, its just the strategic commodity that is linked to living standards of many people and therefore of interest. Another fact, overall if you plot kwacha exchange rates over time (years) you will see a general rising trend depicting the bop problems you mentioned but the seasonal swings are the ones at play now. Take eco201 maybe you will improve in your analysis.

  16. Laz says:

    Perhaps. . .Changing national currency MK to USD or GBP now than later is the possible direction. I ve seen Zimbabwe recovering from her serious economic hardship which Malawi is slowly but surely going towards. Printing more stationery and borrowing more is a serious mistake.

    1. Wamandasi says:

      backward thinking

  17. osamangoti kwacha ikuchita bwino apa, ikalakwa mumakweza zinthu,i have in mind petrol and diesel,….already on the world market crude oli is down to around $56 dollars per barrel from $106 sometime last year koma kuno machenge mukungokhalira,isnt that the money mukupangira prop ka kwacha kanuko.? pa demo tikaikaponso yoti mafuta anatsika mtengo mukutibera.Boma likamayambitsa khalidwe loipalo ndiye matrader apanga bwanji?Pa 13 ine ndikayendera imeneyotu zandalezo ndizanu

  18. joseph says:

    Its good

  19. The truth is our Kwacha is gaining value.

  20. Appreciate please what ever efforts

  21. MAZABUKA IS NOW RICH NO WONDER IS LUCHENZA BOY.

  22. Baba wa Boyi says:

    The latest is @ 455.

  23. Atupele Keba says:

    The article attrubtes the gains in Kwacha to minor exports. So minor exports = gains in Kwacha. This is quite telling.

  24. Baba wa Boyi says:

    Can someone please explain to me how this forex cover up works?

    I have checked on some reputable exchange sites and they all say the same that the Kwacha is trading at $465.495 or $465.224 or $464.75 the last one is Bloomberg.

    Where is this lie that most are talking about?

    All we have been told is the value of the Kwacha compared to the Dollar, nothing else, so where are all these DPP have bought houses coming from. I thought Nyasa Time has investigative journalists why not a story about these houses that have been bought, and how the government is covering up the exchange rate?

  25. Alfred Munduwabo says:

    The hidden dollars have been brought back to Malawi . All the salaries demands should be fulfilled . No more strikes 2015 .

  26. BigMan says:

    Koma some Malawians are pitiful indeed. How can anyone be unhappy that the Kwacha has regained strength against the dollar? Unpatriotic or just dull?

  27. Nanga ngati ndalama ikukwela nde zinthu musisa?

  28. sokalawo says:

    Do more please,we are suffering.

  29. mavuto15 says:

    This is pure mass hypnosis how come and why would an agro based economy pick up at its time of investment. these crooks are covering a much bigger and sinister thing.the magnitude of what we are told and is really going on is absolutly enomous

  30. Masoambeta says:

    This is all but hogwash.
    The advantage to this propaganda is that majority of citizens in Malawi are illiterate and gullible.
    The reality is that Kwacha is still falling and there is nothing lie about this fact.
    His misinformation benefits the scoundrels running the government now.
    By the way, how are they buying houses in the UK now when they were renting in Area 49??
    A Malawi chonde mu safe ndi tulo.

    1. Masoambeta says:

      I have solid proof of a DPP goon who was renting in Aea 49 last year, and we always hitch hiked the same minibus every morning.
      Now he has three cars, children are at private schools now and wife flies to UK alomwe agula nyumba. All in the space of 1yr.

  31. martha says:

    Akuti reserve bank ordered banks to release their forex reserves. There is no appreciation here. Politicised artificial appreciation

  32. Wakwiya ndi mfiti!!!! God will help us!

  33. Benson Chirwa says:

    Covering things yes. Getting loan from outside banks to portray an image of Peter performing well. We’ll cry when it comes to repayment. We’ve reliable sources.

  34. jacobosi says:

    Bravo!

  35. ujeni says:

    Mota engil loan at work

  36. mbuya says:

    Shaaaaaaa! ARTIFICIAL…..MAKE-UP…..KUZIPHODA….THE OLDEST MOF IN THE WORLD.

  37. MULOMWE says:

    bravoooo!! kwacha bravooo!!!Apm&DPP lead Gorvnment. mukasowa zochita kagwileni mafulufute osati mastrike zopusa basi akukutumaniyo akupwetekesani

  38. Fathara says:

    GOOG MORNING MALAWI IN 2015!!!! NDINANENA KUTI A MALAWI TISADANDAWULE CHUMA CHA ZIKO CHIKHALA BWINO KOMA SIMUMANDI NVESA. NDINANENA KUTI NDI KUWONA CHUMA CHA MALAWI CHIKUCHITA BWINO, NDIPO ZITHU ZAMBILI ZIKU TUKUKA ZAMA PHUZILO, ZAWUMOYO, ZAWULIMI NDI ZINA ZOTELO KOMA A MALAWI SIMUMANDI NVESA. A MALAWI TIYENI TIKHALE ANTHU ACHIKHULUPILILO, MULUNGU WATHU YESU CRISTU NDIWAMOYO SAMACHEDWA SAMAFULUMILA. NDIYE TIYENI TIMUSIYILE YESU YEMWEYO KUTI AYIYENDESE MALAWI. ZINA LANU YESU NDILOPAMBANA LOPOSA MAYINA ONSE, ZINA LANU NDILOPAMBANA, ZINA LANU YESU NDI LOMASULA, ZINA LANU YESU NDILOTETEZA. LIKWEZEKE ZINA LA YESU CRISTU, ATATE DALISANI MALAWI, PRESIDENT PETER MUTHALIKA NDI BOMA LAKE LA DPP, MUZINA LANU YESU AMEN.

  39. Martin Luther King Malawi says:

    2015 still telling lies, very old and a grandpa but still cheating, interesting! Nice mind / market games, keep it up.

  40. Thawani says:

    Nyatwa panopa a president ena achita manyazi, apa tangoyamba.ngati panopa kwacha ikuchita stabilize what about munyengo ya masika. Bravo a president 2019 woyeeee. Ine ndimakunyadirani. Mtimawu kuti myaaaaaaaaaaaaaaaaaaaa!

  41. Wanex banda says:

    Akangoyamba fodya,dollar will be at K240.GUD DEVELOPMENT

  42. stop politicizing kwacha

  43. rif says:

    APM sanacheperetu uyu!

  44. tsetsefly says:

    economical tactics

  45. John says:

    Mumatsitsa dala mphamvu ya kwacha ncholinga choti muoneke ngati madolo mukukonza zinthu. Ndi zija munalinamiza dziko kuti Zero deficit yagwira mseu mutabwerekera ndarama za MRA. Shame on this government and its leadership.

  46. Political Analyst says:

    Yes.Such good developments definitely may re-brand the current tainted DPP led government.
    Devise self-evidently credible means therefore our dear leaders by first sorting out the NACgate and the labour strikes issues with urgency as you next take headon the ugly CASHGATE! Stiff neckedness on issues of national interests will only deteorate the already poor status of our Malawi nation.
    As a Nation we need to leave behind all these political bickerings and forge ahead into national developments such as the Green-belt,Nsanje Inland port,Fertiliser manufacturing factory,Mining,Various Admistrative reforms starting with the size and efficiency of the Cabinet itself etc.

  47. Maxwell Imwa says:

    good news in this new year, 2015

  48. George Zibophe says:

    Bigup APM

  49. Israel2013 says:

    Fuel prices on international market are falling(since June to now about 30% drop). Now kwacha is gaining against dollar but no direct benefit to the local Malawian. Locals can only benefit if pump prices can also go down..,,.AND THAT IS WHAT SHOULD HAPPEN NOW, NOT LATER. We know that this downward trend of international prices shall come to an end. Its just a matter of time. On the other hand we do not expect local fuel prices to go up with any slight rise in international prices when there has been no equivalent responce when international prices have dropped. Whatever happened to the automatic pricing adjustment system.

  50. bombsday says:

    The impact of exports and good macroeconomic policies on the gaining of the Kwacha can not be overlooked.

    However,I largely attribute this exciting news to the fiscal discipline that President Mutharika and his govt are championing.There is a clear drastic reduction in Presidential travels(cut on expenditure) and also the various reforms that the President initiated soon after taking over reins of power are now bearing fruits.This is not propaganda but simply facts on the ground.

    Therefore,the Public Sector Reform Commission ought to be supported by all well-meaning Malawians.

    Happy New Year People!!

  51. Bless says:

    I hope we are not borrowing dollars from outside the country. What has happened. Can you please be transparent by sharing more information to Malawians on what is causing the kwacha depreciate and then within the same month appreciates

  52. CHEWA FEDERAL FRONT says:

    Too good a story to be true.
    $931.24 is nearly a landmark billion $; and you mean the impoverished Malawi has this huge sum of money? From where? Masewe or Tchopa or M’bwiza?
    If we were really “sitting on” a billion dollars would the university be closed? Would the courts be indefinitely shut down?
    My good author, stop day-dreaming. Tell you what? The DPP administration will shortly collapse under the weight of spiralling inflation and industrial strikes. Just wait abit.
    You know author, Masewe, Tchopa or M’bwiza or Vimbuza will not earn us forex. Nevertheless, you can continue dancing M’bwiza or Vimbuza as we wait for Kasungu to grow the green gold, for all of us, which can only be ready in April.

  53. Kadakwiza says:

    Its good news to hear, keep it Mr. Finance Minister though when the economy will stabilize, the DPP government will dump you. After cabinet reshuffle you will be replaced by a lomwe and you will be minister of local government as it happened during Bingu’s era. Anyway good luck.

  54. Mada Wa Muthalika says:

    CHOKANI KU BANK NBS

    BUYING 1$ K501.00
    SELLING 1$ K515.00

    TIYENI UKO. MUKAKHUTA ZA CASHGATE, PITANI KU TOILET !

  55. phalombeboys says:

    This is festive season there has been alot of Malawians living abroad coming home for holidays, other Malawians sending remittances back home, all these funds are in foreign currencies. On top of that there has been an influx of foreign tourists this period and all of them bringing foreign currencies. The availability of these foreign currencies has made the kwacha gain a substantial strength. When all these people have gone back to their respective countries the kwacha will continue with its downward slide. Sikuti abwampiniwa achitapo chilichonse chanzeru. Kwacha ingodzisuntha yokha.

  56. Malawianah says:

    Zina kumayamika thanks government mwayamba kugwira ntchito tsopano.

  57. Denkhule says:

    The gain with alot of pain. Only those who believe in the word of God shall survive the crisis. The prophecy of Isiaah 55 reading from vs 1 through 5 has come to pass.

  58. Parallel Market says:

    A john phiri umbuli ukuphani inu. You dont even understand the benefits of currency appreciation. Tamangodyani mango and leave this kwa anthu ozindikira azikomenta. Shame on you!!!

  59. fkr says:

    I don’t believe these figures on reserves for a second. Where is all the kwach ? There is only 1/3rd the kwacha in circulation at the moment. Cheating financials is not the way to do it. The government will need to print kwacha shortly to pay for salary increases promised to civil servants etc. This will cause a major economic crash. Short term gain equals long term pain. Its that simple.

  60. mtedxa says:

    We expect to be hearing such positive economic headlines in 2015.Times are gone we could expect solely tobacco sales to heal our economic wounds. Diversification is the only remedy small exports can gradually boast our Malawi.

  61. Dont brain watch the nation

  62. Chikopa says:

    Wina apa afuna kuti asokoneze kuti zinthu zisayende muona wina aku kolezela strike wina ma demo zikoli ndilathu tiyeni tigwire ntchito kaye tizamenyanenso 2019 7months tamupanga kale tamuweluza kale tiyeni tipeleke mpata akuma court tiyena tilimbe mtima 6 months yasalayi ndipafupi tidikiye kuti board ya imf ipange desition tisathamange tisangalala

  63. yonayona says:

    Yebooooh!!

  64. In 2012 you pegged kwacha at K167 to a dollar while the actual value was way above K300.zimenezi sizomwe zija zomayipatsa kwacha value yabodza zija?

  65. Mmihavani says:

    Malawians delight in poverty. They are like mphutsi, finye, nsabwe etc. They detest prosperity but are happy to be poor. They are jealous of themselves, of each other but cosy with foreigners developing iwo aziimba mmanja azitolera ziduswa. Muona nkhani iyi sakondwera nayo ambiri. They will post sceptical comments here. Wayamba kale MWENECHO munthu ozolowera mavuto.

  66. Phwilephwile says:

    Apo! pa 2015 ndikusunzumilapo mamatama akulu ndi kudzitukumula ngati finye kuti fwe fwe fwe.adzati mwaona malipilo anga ndikuti akwele ndani akuti fwe.Sizokakamizana kudzasintha mbendela kumbukani padzana paja… Mbendela yoti musithe ili ku MEC.

  67. No Name says:

    Chokani apa mwabwerka tindalama penapake ndicholinga chotipusisa makape inu mukuona ngati ndifenso makape tiyeni nazoni tikuwonerani komaabe kwalero lokha tinene kuti muliko bwino koma mwina mawa eni ake andalama mwabwerekazo akatenga zizatha bwanji sindikudziwa.

  68. Big brain says:

    Ma Demonstrate basi kwacha kudzuka ki ki ki a ma NGO mademonstration

    Amuna Ali boma ma donors akwiya muona

  69. PLEASE DON’T COOK UP FIGURES. IF WHAT YOU ARE SAYING IS TRUTH THEN THE PRICE OF PETROL SHOULD GO DOWN. WE KNOW DPP ARE GOOD AT WINDOW DRESSING ACCOUNTS.

  70. phwitiko says:

    931.24 million or 4.88 months,it sounds good to me koma bola musakhale mukunama paja boma lotsogoleledwa ndi DPP limakhoza kuchita china chili chonse kuti zinhtu zioneke ngati zikuenda koma lili bodza kuwapaka a Malawi phula m’maso.

  71. mwiithotho says:

    Mukati chani paja? ? Mwazionatu! ! Zitoyenda sopano. ..

  72. john phiri says:

    This is January, kwacha is stabilized and it is gaining against dollar. what will happen from march amai maimai MALAWI AKUZUKA BASI. NDICHITA DEMO ,MALAWI POWER..

  73. Mwenecho says:

    cover up things r not ok

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