Kwacha Safe? RBM Contradicts Reality as Malawi Currency Chases the Zim Dollar

The Reserve Bank of Malawi (RBM) has “ruled out” any “near-term” devaluation of the kwacha. However, the bank could not rule out the Malawi kwacha being devalued before the New Year hits as the currency continues to tumble toward the fate of Zimbabwe’s dollar-like fiat money.

Governor MacDonald Mafuta Mwale, speaking in Lilongwe, said the central bank is focused on boosting foreign exchange inflows, not weakening the currency.

“Devaluation without solid reserves solves nothing,” he stated. “We’re working to build supply and strengthen confidence, not erode it.”

Mwale emphasised that stable forex rates are essential for economic planning, allowing businesses to import goods reliably, traders to forecast accurately, and households to avoid sudden inflation shocks.

To achieve this, RBM is pursuing long-term strategies like increasing export revenues, attracting remittances, and creating a more predictable investment climate.

His comments are expected to ease anxiety across sectors, especially among importers and consumers who feared another devaluation could trigger a fresh surge in the cost of living.