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Reserve Bank of Malawi assets grow by K421 million

Reserve Bank of Malawi

Total assets for the Reserve Bank of Malawi (RBM) grew by K421 million during the year ended December 31 2020 to K1.8 billion.

This is according to the central bank’s financial report published on Thursday.

The report shows that, among other things, more significant increases were recorded in the African Export-Import Bank receivables at K338,169 million, cash and cash equivalent to K133,841 million, advances to Malawi Government at K111,145 million and loans and advances to customers at K17,141 million.

However, it specifies that the increases were offset by decreases in balances with foreign banks (K169,692 million), Treasury notes (K14, 871 million) and foreign bonds (K10, 255 million).

Notably, performance for most institutions in the country were offset by the Covid pandemic in the reporting year and, in order for RBM itself to mitigate the impact, it undertook a few measures.

“The bank announced agreements with commercial banks and micro-finance institutions regarding a three-month moratorium on interest and principal repayments for all loans contracted by MSMEs,

“RBM also put in place measures to ensure availability of enough foreign exchange to cushion businesses from foreign exchange rate volatility. The bank reviewed its Business Continuity Plan and several measures were implemented to minimise the potential adverse effects of the spread of Covid,” the report reads.

It, however, says, the bank was affected, nonetheless, in areas such as the performance of the Kwacha which had decelerated monthly to the end of the year as low interest rates began to affect portfolio positions resulting in foreign exchange revaluation losses.

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