Figures from the central bank show that in November, banks borrowed K9.84 billion per day at an average rate of 13.9%, showing that Commercial banks are facing liquidity squeeze, resorting to access funds through Lombard facility from the Reserve Bank of Malawi (RBM).  

On the other hand, the figures show that interbank lending also increased at an average of K7.53 billion per day in November at an average rate of 10.5%, a rise from K2.9 billion per day in October at an average rate of 9.9%.

However, spokesperson for the RBM spokesperson Mbane Ngwira said that the liquidity squeeze should not be alarming, stating that the market is now correcting itself. He attributed the squeeze to expenditure was far much less than the receipts.“It could be that the government is receiving more in the market than what it is putting in the market. Spending is far less than what it has been receiving.” said Ngwira.