The Kwacha gained, albeit slightly, against other trading currencies in the third quarter of 2025, figures from the Reserve Bank of Malawi (RBM) show.
In its latest Financial and Economic Review, RBM says the local unit remained stable, at K1,750.37, against the United States (US) dollar.
The Kwacha gained ground against the British Pound and the Euro, by 2 percent and 0.4 percent, respectively.
By the end of the third quarter, the Kwacha was trading at K2,423.25 against the British Pound and K2,103.32 to the Euro.
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RBM attributed the weakening of the Euro during the period to slow economic activity in the Eurozone, ongoing trade uncertainties and expectations that interest rates in the US would remain higher.
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The Kwacha also appreciated by 2.9 percent against the Japanese Yen and 3.7 percent against the Indian Rupee, closing the quarter at K11.70 per yen and K19.53 per rupee.
However, the local currency weakened against the Chinese Yuan, which gained strength during the quarter, supported by a weaker US dollar, increased foreign investment flows and policy support from China’s central bank.
The local currency depreciated by 2 percent against the South African Rand, ending the quarter at K103.37 per rand.
The rand was supported by higher global gold prices, improved trade performance and better fiscal conditions in South Africa.
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The local currency has remained stable for over a year now, maintaining an average of K1,750 against the US Dollar.
In Article IV, which offered guidance on Malawi’s economic management to achieve stability, published in September, the International Monetary Fund said the official exchange rate against the US dollar had been fixed since April 2024., largely erasing the benefits of the November 2023 devaluation.
Economist Velli Nyirongo said the Kwacha’s performance did not automatically signal an improvement in Malawi’s trade balance but may, instead, reflect tight administrative management of the improved foreign exchange inflows.
“This could mean that the Reserve Bank [of Malawi]’s policy measures are bearing fruit,” Nyirongo said.
