Reserve Bank of Malawi (RBM) Governor, Dalitso Kabambe, confirmed that the Kwacha has started showing signs of recovery, gaining by 3% against the dollar from K798 to the green buck to K774, Times has established.

Financial Dealers Association of Malawi (Fimda) President, Patricia Hamisi, also weighed in the appreciation of the Kwacha to the reversal of underlying factors that caused the depreciation. “We have seen reduced rejection rates from the tobacco floors from a high of 70% to now hovering around 25% which has in turn improved the flow of dollars from the tobacco market; hence, addressing the challenge of supply.”

She also said she is expectant that Kwacha will stabilize to K750 to the dollar, has, taken out a lot of speculative and panic buying by importers, thereby reducing pressure on the currency.

“In the short term and within the tobacco season, we expect the Malawi kwacha to keep gaining ground against the dollar to reasonable levels as a steep appreciation could also end up working against the economy. After the tobacco season, the expectation is that the central bank will be intervening where necessary to ensure a stable currency.” she said.

The African Development Bank (AfDB) has foreseen a 5% depreciation of the Malawi Kwacha, because of expected large current account deficits, while other financial experts predicted a 9%drop in the local currency.