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Mixed fortune for Kwacha in September

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PROJECTED TO CONTINUE DEPRECIATING—The Kwacha

The local unit, the Kwacha, depreciated against major trading currencies including the United States (US) Dollar and South African Rand in the month of September owing to increased demand for foreign currency.

But the local currency remained stable against British Pound.

Statistics on the Reserve Bank of Malawi (RBM) website shows that on average in the month under review, a dollar was trading at K754 from K748 in August and selling at K757 from K752.

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The Rand was being bought at K46 from K42 in August and selling at K48 from K45 in August.

While the Kwacha has also depreciated against the Euro, it has stabilised against the British Pound as it was trading at K998 and selling at K1, 010 in the month under review and the preceding month, respectively.

However, the local currency closed the month on a good note with the dollar being bought at K754 which was the same at the close of August, and selling at K759 from K755 in August.

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The Pound closed by buying at K996 from K1017 and selling at K1003 from K1031 in August while the South African Rand closed the month buying at K46 from K47 in August and stabilised its selling at K48.

The Euro closed at K927 from K925 in August and selling at K929 from K945 in August.

The mixed performance comes as countries gradually ease on lockdown conditions and economies are gradually opening up.

Economic experts have since expressed fears that the currency is expected to continue depreciating going forward.

Speaking in an earlier interview, RBM Governor, Wilson Banda, said the Central Bank has put in measures to help contain possible pressure to the local unit.

“Short term we are getting some lines, the IMF will give us some money, we are talking to the World Bank and other multilateral institutions so we will get some relief from them and longterm we need to have a structural solution which will come from institutions like Export Development Fund (EDF),” Banda said.

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