Figures contained in a Monthly Economic Review by the Reserve Bank of Malawi show that net credit to the government from the monetary authorities decreased by K116.7 billion to K165.2 billion in December 2019, translating to 41% decline in public sector credit.

The above was attributed to the central bank’s offloading of treasury notes amounting to K120.6 billion, which resulted in a reduction in the central bank’s holding of Treasury notes to K381.9 billion during the period in review.

On the other hand, (RBM) is contemplating on benefits of a currency swap deal with China, a development that local economists have also supported.

RBM spokesperson Mbane Ngwira told The Nation newspaper that currency swaps are used by the central bank with various entities. “Swaps are one of the instruments we use all over and we have different swaps with different institutions all over the world. There is nothing preventing us from doing currency swap with China just as we do others.” he said