Malawi Kwacha trading at K732to a US $, depreciates by 0.2%

Malawi Kwacha is now trading at K732.50  a US dollar  from aK731.13 on Monday, registering a depreciation  of 0.2% , according to a report by Blantyre-based investment and advisory firm Nico Asset Managers.

The local unit is expected to start appreciating following the opening of the 2017 tobacco marketing season on Tuesday, according to An  Economic Report by Nico for the month of March.

The  firm says in  the report in part: “This overall trend towards depreciation in the value of the kwacha reflects uncertainties regarding Malawi’s macroeconomic outlook and has also been driven by the general strengthening in the value of the US [United States] dollar”.

On interest rates, Nico Asset Managers says the interbank market are expected to be unstable as they depend on the volatility of liquidity while Treasury Bills (TBs) yield is expected to decline following the downward revision of the policy rate by the Reserve Bank of Malawi last month by two percentage points from 24 percent to 22 percent.