Kwacha Plummets again with 4.7% depreciation against dollar

By Chisomo Phiri

The Reserve Bank of Malawi (RBM) has announced that Malawi Kwacha will depreciate by 4.7 percent from K1,126 to K1,180.29 against the dollar starting from October 2, 2023.

According to the central bank, this follows a Foreign Exchange Auction that was held on Wednesday, September 27, 2023.

Governor Wilson Banda

In a statement, RBM Governor Wilson Banda says the forex auction was successful as all Authorised Dealer Banks (ADBs) participated.

He says the foreign exchange auctions are aimed at determining the prevailing market clearing price of the kwacha against the dollar and other major currencies.

RBM announced in January this year that it would be conducting forex auctions periodically to facilitate the discovery of a prevailing market-clearing exchange rate for the kwacha against major currencies, thereby promoting transparency in the determination of the exchange rate.