Malawi Urged to Unify Exchange Rates, Economists Warn of Risks

Malawi Urged to Harmonize Exchange Rates Amid Economic Concerns

Key Business Points • Malawi’s current dual exchange rate system is unsustainable, distorting trade and pricing while offering no real inflation control. • Aligning official and parallel rates could trigger […] The post Malawi Urged to Harmonize Exchange Rates Amid Economic Concerns appeared first on Business Malawi.

Market reacts to policy rate cut

By Benadetta Chiwanda Mia & Chimwemwe Mangazi  Banks, the private sector and economists have reacted to last week’s policy rate slash to 24 percent from 26 percent, as the Reserve Bank of Malaw…

Malawi urged to unify exchange rates, economists warn of risks

Malawi should move decisively to unify its exchange rate because the current dual system is “untenable” and no longer restrains inflation, a new policy note has indicted. But economists have cautioned that thin reserves and weak exports make execution critical. A policy note titled ‘Does Malawi’s exchange rate regime keep prices low?’, co-authored by officials from International Food Policy Research Institute and National Planning Commission,   …