An assessment by the Reserve Bank of Malawi (RBM) has revealed that if the Covid-19 continues, it might have a devastating impact on inflation as well as the stability of the financial system as the capital of institutions will be eroded.
RBM Board Director, Pius Mulipa, disclosed this in Lilongwe Monday when the central bank presented a K6.2 billion cheque to the Presidential Taskforce on Covid-19.
Mulipa said the impact of the pandemic on both the international and domestic economies is unprecedented and surpasses any economic crisis since the depression.
“The social-economic impact of the pandemic is still unfolding and cannot be fully assessed and quantified at the moment. However, it is a fact that the Covid-19 pandemic is having a severe impact on Malawi’s economy,” Mulipa said.
He said as an institution charged with ensuring price and financial stability, RBM felt that it was within its interest and mandate to respond to the government’s call for contributions and donations towards the Covid-19 Response Fund.
Presidential Taskforce on Covid 19 Co-Chairperson, John Phuka, thanked RBM for the donation.
Phuka said the taskforce has come up with a budget of around K150 billion to effectively fight the pandemic, adding that currently, they have raised about K25 billion.
According to Phuka, with many global economies struggling because of the pandemic, the committee is relying on domestic resource mobilization in the fight.
“We, therefore, ask many companies and organisations to emulate the gesture set by RBM,” Phuka said.