Malawi forex reserves up 11% but shortages persist

Malawi’s foreign exchange reserves have risen to $616.3 million in June 2026 – but an economist has warned the improvement remains nowhere near enough to ease the forex shortages plaguing businesses and other users across the country.

According to the Reserve Bank of Malawi’s (RBM) June 2026 Monthly Economic Review, total reserves increased from $596.5 million in May to $616.3 million in June – equivalent to 2.5 months of import cover.

That figure also marks a sharp rise from $555.9 million, or 2.2 months of imports, recorded in June 2025.

The jump represents a $60.4 million increase, or 10.9 percent, year-on-year, with the RBM attributing the improvement to gains in both gross official and private-sector reserves.

But despite the encouraging headline figures, experts have been quick to pour cold water on suggestions that Malawi’s forex woes are easing.

Economist Edward Lemani struck a  cautious tone, warning it was premature to conclude that the gains reflect structural change, and arguing that Malawi’s narrow export base and heavy import dependence remain fundamental constraints on the economy.

He said sustainable reserve accumulation ultimately depended on stronger, more diversified exports, and argued that scarce forex should increasingly be channelled towards productive sectors capable of expanding the country’s export base.

Lemani further warned that manufacturers and exporters could become uncompetitive if forced to obtain imported inputs at high effective exchange rates – including from the parallel market – while receiving less favourable rates for their own export proceeds.