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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tum sg
5 years ago

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?

mike
5 years ago

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?

masa masina
masa masina
5 years ago

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

Jacob Phiri
Jacob Phiri
5 years ago

Its a good thing for locals to hear.

Max Wa Philimon
5 years ago

If Not Tobacco? What Nex?

chimwemwe chimtengo
chimwemwe chimtengo
5 years ago

zili bwino tingolemekeza ambuye basi.

Wamandasi
5 years ago

keep the fuel price unchanged to cushion mk

walhelha ochavo
5 years ago

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

chakwanuleka
chakwanuleka
5 years ago

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… Read more »

Big brain
Big brain
5 years ago

Wakwiya ndi thumbuka ki ki ki koma khaki niyomweyo

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