The Malawi Kwacha has shown signs of gaining ground against the major currencies from the onset of this year.
According to the Reserve Bank of Malawi’s (RBM’s) January economic perforce report, at the end of that month, the Kwacha appreciated by 1.5 percent and 0.1 percent against the Euro and British pound.
The central bank has attributed the Euro’s underperformance to weak economic growth prospects in the Eurozone while the pound weakened as a result of rate cuts by the Bank of England, amid falling inflation and subdued economic activity.
The Kwacha also strengthened by 1.3 per cent against the South African rand in the month under review.
According to daily exchange updates from the RBM, the Kwacha continues to gain as it is now trading at K1866.43 from K1,888.43 per Euro in January and the pound at K2,185.74 in March from K2, 221.35 in January.
It was anticipated that the Kwacha may start to find its feet after the coming in of the IMF’s Extended Credit Facility (ECF) and the continued inflow of foreign aid.
The central banks also hold forex auctions, where commercial banks participate in a bid to aid the stability of the exchange rate.
Despite the slight appreciation against some of the major currencies, the Kwacha however remained steady against the US dollar.
