Malawi’s high forex reserves improves economy

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The Reserve Bank of Malawi (RBM) said the gross official reserves have increase the Malawi Growth and Development Strategy phase two (MGDS-11).

APA reports that the bank said the growth had led to $664.3million or 3.18 months of import cover from $645.3 million or 3.09 months of import cover as at September 30 2015.

A Financial Development Report of the RBM released on Monday said the foreign exchange reserves increased following a decline period when the central bank offloaded some US dollars to support the importation of strategic commodities.

“This increase is as a result of a slowdown in imports which have enabled the central bank to rebuild its stocks using the tobacco proceeds,” it said.

Meanwhile the local currency, the Kwacha, has started showing signs of appreciation against major trading currencies.

It is now trading at MK552.8 to the dollar from MK560.

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