Gvt believes monetary policies at work
The Malawi Government
boasts that sound economic policies and government strategic thinking as
spearheaded by President Professor Arthur Peter Mutharika has resulted into the
current “tremendous” improvement in the official and private foreign reserves.
 |
| Hon Kondwani Nakhumwa |
Minister of Information Tourism
and Culture Kondwani Nankhumwa said in a statement Malawi has yet again
registered another improvement on official and private foreign reserves translating
into greater import cover “as never seen before” in the country’s history.
This follows the rising of official
foreign reserves to USD646.26 million as of Wednesday 14th January
2015. The rise translates into an import cover of 3.38 months and the private
sector official foreign reserves are at USD325.94 million translating into an
import cover of 1.71 months.
“Cumulatively, it means the
country has a total of USD972.16 million in foreign reserves translating into
an import cover of 5.1 months.” indicated Nankhumwa
According to Reserve Bank of
Malawi Financial Market Developments statistics on Wednesday, Gross Official
Reserves increased during the week ending 9th January 2015 compared to the preceding
week. The Gross Official Reserves stood at US$607.95 million (3.18 months of
imports) as at 9th January, 2015 compared to US$606.19 million (3.17 months of
imports) recorded on 2nd January, 2015. The Gross Official Reserves went up
further and stood at US$646.22 million (3.38 months of imports) as at Monday,
12th January, 2015.
 |
| Gross Official Foreign Reserves from 2nd Jan-12th Jan 2015 (by RBM) |
Compare between December 19 to 30th 2014 Statistics
 |
| Gross Official Foreign Reserves from 19th Dec-24th Dec 2014 (by RBM) |
The current private sector foreign
exchange reserve import cover of $325.94 translating to 1.71 month is a decline
from week ending 9th January, 2015 where it rose to $338.09 translating to 1.77
months an increase from 2nd January, 2015 at $314.49 translating to 1.65 months
import cover.
 |
| Private Sector Foreign Exchange Reserve from 2 Jan - 13th Jan 2015 (by RBM) |
Compare between 19th to 30th December 2014 Statistics
 |
| Private Sector Foreign Exchange Reserve from 19th Dec - 29th Dec 2014 (by RBM) |
But as of Wednesday Kwacha has continued to appreciate against the USD trading at around MK462.5711 on Wednesday from around 466.5601 on Tuesday.
 |
| Exchange Rate Development from 6th Jan- 13th Jan 2015 (by RBM) |
Compare between 19th to 30th December 2014 Statistics
 |
| Exchange Rate Development from 18th Dec- 29th Dec 2014 (by RBM) |
RBM statistics indicates Private
Sector Foreign Exchange Reserves (Foreign reserves under the direct control of
authrozed dealer banks (ADBs) which consists of ADBs own forex positions and
foreign currency denominated accounts balances of their clients) ADBs sales to
the market at US$48.88 million surpassed corresponding purchases by US$7.55
million during the week ending 9th January 2015. ADBs bought US$6.27 million
from the market against sales of US$5.54 million Tuesday.
“It is worth pointing out that
this has never happened before in Malawi’s history. It is the first time for
the country to hit such levels of reserves and import cover even at the highest
periods of good economic growth.” Said Nankhumwa
The Minister has assured
Malawians that government will continue on the path withstanding all the
challenges to make Malawi a middle income country.
“In the same vein,
government wishes to appeal to every one of us to use these foreign reserves
prudently, focusing only on those activities that will help grow the reserves,
while we all rally behind the leadership of His Excellency the State President
Professor Peter Mutharika to push further the agenda of shifting the direction
of the country into better days.” He said
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