Forex reserves continue to rise, now at 3.33 months

 

Gross foreign exchange reserves continue to rise with latest figures from the Reserve Bank of Malawi (RBM) showing a jump to 3.33 months of import cover during the first week of August.

Ngwira:We have built reserves

Recent RBM daily financial market development report for August 8 indicates that gross official reserves have been hovering at around $694.30 million (K506.8 billion) which is an equivalent of 3.32 months of import cover.

The increase in the foreign exchange reserves against the background of a stable kwacha which remained so since December last year, trading at around K734 to a dollar.

Speaking recently with Business News, RBM spokesperson Mbane Ngwira said the central bank has been building reserves to around three months of import cover and to achieve the feat, it aims at having excess liquidity at zero as this is what brings about the demand for foreign exchange.

In a recent interview, economic statistician Alick Nyasulu said the current economic underpinnings and government dealings and may lead to an increase in reserves, which might also lead to a strong kwacha. n

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