Forex Reserve now at 3.33 months

Written by  Mary Luhanga

Recent Reserve Bank of Malawi financial report indicates that gross official reserves are now at 8694.30 million (K506.8 Billion) which is equivalent of 3.33 months import cover.

The increase in the foreign exchange reserves is against the background of a stable Kwacha which remained so since December last year, trading at around K734 to a dollar.

In an interview, RMB publicist Mbane Ngwira said the Central Bank has been building reserves to around three months of import cover and to achieve the feat, it aims at having excess liquidity at zero as this is what brings about the demand for foreign exchange.

Recently Alick Nyasulu the economic statistician said the current economic underpinnings and government dealings may lead to an increase in reserve, which might also lead to a strong Kwacha.

Get Your Newsletter