Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Malawian Kwacha Hits Decade Low as Foreign Reserves Decline

Feb. 18 (Bloomberg) -- Malawi’s kwacha dropped to the lowest in almost a decade as the Southern African country’s foreign-exchange reserves dwindled further.

The kwacha retreated 1.7 percent to 370 a dollar at 5:18 p.m. in Lilongwe, the capital, according to data compiled by Bloomberg. It has fallen 9.5 percent this year and is at the weakest since June 22, 1993, when Bloomberg began compiling data on the currency.

“Liquidity in the foreign-exchange market is extremely limited, particularly offshore, with the supply of dollars very, very thin,” Yvette Babb, a strategist at Standard Bank Group Ltd. in London, said in an e-mailed reply to questions. “These dynamics continue to exert upward pressure on the currency.”

Malawi’s foreign-currency reserves have declined 18 percent to $192 million, or 1.01 months of import cover, since a year earlier, according to the Reserve Bank of Malawi.

President Joyce Banda devalued the kwacha by a third against the dollar a month after taking office in April to meet conditions set by the International Monetary Fund for a resumption of donor aid.

To contact the reporter on this story: Chris Kay in Abuja at ckay5@bloomberg.net

To contact the editor responsible for this story: Vernon Wessels at vwessels@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.