Kwacha Shows Signs of Stability, Despite Pressure from Major Currencies
The Malawi kwacha has shown signs of stability in recent months, according to the Reserve Bank of Malawi.
However, the kwacha faces pressure to keep up with major trading currencies like the US dollar, British pound, and South African rand.
Historically, the kwacha has experienced significant depreciation, losing 338% of its value since the 2012 devaluation and 196% since May 2012. In fact, as recently as March 2024, the kwacha fell by 3% to MK1 751 to the dollar.
The recent Foreign Exchange Auctions was conducted by the central Bank of Malawi to manage foreign exchange transactions, influenced by global market trends and Malawi’s economic performance while the kwacha was devalued by 25% against the US dollar in May 2022.
Despite these challenges, the Reserve Bank of Malawi is making all possible efforts to manage foreign exchange transactions enabling stability and support the country’s economic growth.
