The Malawi Kwacha has surprised local economic experts following its reverse from a trend of depreciation to one of appreciation.
The Kwacha is now trading at K548 from K569 a few weeks ago against the United States dollar. Over the past month the local currency was trading at over K600 against American dollar.
One of the experts Colleen Kaluwa said during this period the local currency usually weakens due to increase in importation of agricultural inputs like fertilizer and seeds.
“What is happening now is very surprising because our Kwacha was supposed to be depreciating, because it is the period when we drain our Forex through imports despite having no measures to replace forex through exports,” said Kalua.
Kalua further said the development might be due to a reduction in importation of luxurious materials.
However, executive director for Centre for Free Market Enterprise (CFME) Peter Yakobe said the country needs to set up measures which will enable people to produce a lot of goods and services for export so that we can have enough forex.