Liquidity levels hit K11.98bn—Report

Portfolio and investment advisory management firm Nico Asset Managers Limited has said liquidity levels have surged during the week ending December 4 to an average K11.98 billion (about $19.1 million) from K8.49 billion (about $ 13.5 million) a day.

The investment management firm also indicates that borrowing between banks averaged K6.04 billion per day in the week under review, increasing from K4.80 billion per day in the previous week.

The report says average interbank rate for the week on the other hand fell by 26.07 percent from 26.17 percent in the previous week, while government security maturities stood at K23.50 billion resulting in a net injection of K12.40 billion.

So far, the Reserve Bank of Malawi (RBM) has been implementing a tight monetary policy to control money supply to tame inflation.

Chancellor College economics professor Ben Kaluwa, in an earlier interview with Business News, said an improvement in liquidity is a sign that people cannot afford to borrow from commercial banks due to high lending rates.n