The Reserve Bank of Malawi (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

 In 2015, the (former) Minister of Finance Goodall Gondwe was quoted to have said that one of the reasons for the Kwacha’s appreciation in value was a currency swap deal that Treasury had done with the PTA Bank. The deal worth $250 million (about K18 Billion) was not according to the Minister an indication that Malaŵi had borrowed from the PTA Bank. It was simply a currency swap and that ‘nobody will lose out’.