The April Monthly Economic Review by Nico Asset Managers has casted doubt over the stability of the Malawi Kwacha amidst the coronavirus pandemic in Malawi.
The Investment and advisory firm has said that implementation of lockdowns in nations that are trading partners with Malawi, will curb the local unit, even with the presence of a tobacco market that is registering improved prices. The lockdowns and other border restrictions have negatively affected exports. However, it must be considered that the exports sector was already registering a worsening trade balance, prior to the pandemic; figures are likely to lower drastically. “…it might take time before we start exporting the agricultural products that we produce.” says part of the report
On the other hand, the Reserve Bank of Malawi (RBM) Board Director, Pius Mulipa told the Presidential Task Force on Covid-19 that after assessments, it has been found that the coronavirus pandemic will impact on inflation. This is despite the central bank’s governor aiming to achieve a 5% inflation target despite the pandemic.