Tags: Reserve Bank of Malawi

Cumulative tea earnings down 39 percent

Cumulative earnings from tea, one of the country’s export crops, has dropped by 39 percent year-on-year to $2.7 million (K1.2 billion) from the previous year’s $4.4 million (K1.9 billion), according to a latest report. In its monthly economic review for March 2015, Reserve Bank of Malawi (RBM) has attributed the “relatively lower earnings” to lower…

Import cover calculating figure rises to $209 million

Malawi’s monthly import cover calculating figure has jumped by 9.4 percent to $209 million from $191 million, the Reserve Bank of Malawi (RBM) has confirmed, reflecting the country’s huge appetite for imports. This, according to an analyst, could have been caused by the availability of foreign exchange, which has pushed the import cover—the number of…

Exclusive: RBM’s Mzuzu branch payment mess exposed

The Reserve Bank of Malawi (RBM)—supposedly the epitome of fiscal integrity—is at pains to justify more than K9 billion in extra spending in the construction of its Mzuzu Branch offices up North, especially after the main contractor has abandoned the project citing non-payment. This week, RBM could not explain the triple digit cost overruns, contentious…

National Switch to go live early 2015—RBM

The National Switch (Nat Switch), a shared switch platform to connect all the country’s commercial banks, will go live in early 2015, with preparations for the roll-out at an advanced stage, the Reserve Bank of Malawi (RBM) has confirmed. The switch was already installed, tested, fully configured and the banks started to test connectivity and…

Liquidity challenges hit commercial banks

Some commercial banks are struggling to meet their daily minimum liquidity requirements and have resorted to borrowing from Reserve Bank of Malawi (RBM), driving up interest rates. Analysts have said this has the potential of threatening to uphold current prohibitive bank lending rates, hovering at 40 percent. RBM figures show that financial institutions borrowed up…

MCCCI blames kwacha fall on panic buying

Malawi Confederation of Chambers of Commerce and Industry (MCCCI) has blamed the recent sharp fall of the local currency on panic, saying foreign exchange is available to private sector players. MCCCI chief executive officer Chancellor Kaferapanjira, in an email interview, urged government to “talk and not mute” on important issues to create confidence on the…

Nico General eyes 45% market share

Nico General Insurance Company, a subsidiary of Malawi Stock Exchange (MSE)-listed financial services group Nico Holdings Limited, has touted 2014 as a good year for business and plans to grow its market share next year to 45 percent from 33 percent. The insurance firm, according to its chief executive officer Eric Chapola, said in the…

Civil servants salaries to delay

Civil servants will have to wait a little bit longer to receive their salaries, government has announced. In a press statement dated November 27 2014 signed by secretary to the Treasury Ronald Mangani, the delay follows “incomplete and inaccurate data arising from processing errors.”   “The Government of Malawi highly values the role that civil…

New Cashgate frontier: Pac summons ACB, DPP, RBM and others

The Public Accounts Committee (PAC) of Parliament has summoned officials from the Director of Public Prosecutions (DPP) and Anti-Corruption Bureau (ACB) and other agencies to update the committee on progress in Cashgate. PAC chairperson Alekeni Menyani said in an interview yesterday the interface meetings have been scheduled for next week for updates on the comprehensive…

MLS challenges RBM on legal regulations

The Malawi Law Society (MLS) has obtained an injunction that effectively stops the Reserve Bank of Malawi (RBM) from implementing a law aimed at regulating matters of legal practitioners. A gazetted directive in the Insurance (Claims Management) of August 15 2014 by the Registrar of Financial Institutions, under the RBM, requires lawyers to submit to…

Scale up market efficiency, RBM urges financial dealers

Financial dealers in the country have been urged to be on the forefront in ensuring that markets are functional and efficient. Reserve Bank of Malawi (RBM) Governor Charles Chuka made the urge on Saturday last week during the opening of a three-day annual conference of the Financial Markets Dealers Association (Fimda). “Our commitment is to…

Kwacha hits worst point, may trade at K525 by Dec

The kwacha hit its lowest point to the dollar since 2012 on Monday, with the middle rate falling to about K440 compared to about K430, the worst position last year, Reserve Bank of Malawi (RBM) figures show. Analysts have said this is a hurricane and have called upon authorities to act to avert serious danger,…

Chuka’s speaks on depreciating kwacha

In recent weeks, the local currency, the kwacha, has continued to show signs of ceding to major international currencies, notably the United States dollar. The depreciation of the kwacha or weakening in the value of the local currency is happening soon after the country has just closed its marketing season for tobacco, touted as the…

Weakening Malawi kwacha not strange—Chuka

Reserve Bank of Malawi (RBM) Governor Charles Chuka has downplayed the buzz over the recent weakening of kwacha against other major foreign currencies. The local currency has continued to lose ground in recent weeks, especially against to the dollar, trading around K440 from a rate of K390 mid this year. Some foreign exchange bureaus are…

Chuka, Kamphasa, Mkondiwa back on PAC wanted list

The Public Accounts Committee (PAC) of Parliament will again summon three of the major players in the Public Finance Management (PFM) system that the House body believes knew more about Cashgate than they let on. The Nation has learnt that PAC is not satisfied with the responses given by the Chief Secretary to the Government,…

Malawi T-bills rates plunge

Treasury bills (T-bills) rates—one of the determinants of commercial bank interest rates—fell on all tenors in August compared to the previous month, according to Nico Asset Managers. The 2014 August report from the investment advisory firm shows that T-bills yield fell by an average 2.64 percent in August compared to the previous month. Year—on-year, the…

Food uncertainty, budget may push up prices

Food uncertainty and the implementation of the proposed K742.8 billion budget may threaten an increase in inflation—generally push up prices—according to monetary authorities. According to a Monetary Policy Committee (MPC) meeting held on Tuesday, which was chaired by Reserve Bank of Malawi (RBM) governor Charles Chuka, noted that despite the positive developments to date, some…

RBM to maintain monetary policy

The Reserve bank of Malawi (RBM) has said it will continue implementing a prudent monetary policy against a backdrop of a widening fiscal deficit in the 2014/15 proposed budget. Speaking during the Bankers Association of Malawi (BAM) annual dinner and dance at Sunbird Mount Soche in Blantyre on Friday, RBM deputy governor (economics) Naomi Ngwira…

Malawi NGOs to disclose expenditures

Non-governmental organisations (NGOs) will start disclosing and reporting to the public their expenditures as one way of achieving transparency and accountability. This is one of the resolutions contained in the NGO Governance Charter that the Council for Non-Governmental Organisations in Malawi (Congoma) agreed on in Blantyre in 2007 during its annual general meeting. Malawi President…