Malawi government has said it has registered tremendous improvement in the official and private foreign reserves translating into greater import cover as never seen before in the country’s history.
Government spokesman Kondwani Nankhumwa, who is also Minister of Information, he official foreign reserves are at USD646.26 million translating into an import cover of 3.38 months and the private sector official foreign reserves are at USD325.94 million translating into an import cover of 1.71 months.
Cumulatively, it means the country has a total of USD972.16 million in foreign reserves translating into an import cover of 5.1 months.
“It is worth pointing out that this has never happened before in Malawi’s history. It is the first time for the country to hit such levels of reserves and import cover even at the highest periods of good economic growth” Nankhuma said in a statement.
Government has also advised the general public to prudently use forex on activities that will help grow the reserves.
Malawi’s Finance, Economic Planning and Development Minister Goodall Gondwe also said recently that he is delighted with the current appreciation of the kwacha against other major international currencies, especially the US dollar.
“I did say that in two weeks time, we are going to have a stabilised exchange rate and [everyone] was thinking that I must have been dreaming.
“In fact, within one week, stabilisation took place. I am happy that the free depreciation that we were experiencing at that time was halted and so, I am happy indeed,” Gondwe was quoted by The Nation.
A sharp fall in the value of the kwacha in September last year, was one major economic highlight of the local currency as it sent shivers to local importers and manufacturers who were left with no choice, but to raise more to finance their import demands.
The currency traded as high as K520 in some authorised dealer banks (ADBs), a 33 percent sharp fall from a rate of K390 in August last year.Follow and Subscribe Nyasa TV :