Wednesday, March 3, 2021
  • About Us
  • ImagiNATION
  • Adverts
  • Rate Card
  • Contact Us
The Nation Online
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
No Result
View All Result
Home Business Business News

Tobacco dollars continue to stabilise kwacha—RBM

by Orama Chiphwanya
04/06/2018
in Business News, Editors Pick
2 min read
0
Share on FacebookShare on TwitterShare on WhatsAppShare on LinkedinLinkedinShare via Email

 

The Reserve Bank of Malawi (RBM) says proceeds from tobacco have contributed to the stability of the kwacha and increased foreign exchange reserves.

RelatedHeadlines

New strategy targets Lower digital costs

Treasury fast-tracks debt retirement fund-roll out

PR practitioners key to corporate growth—Partridge

In an interview on Friday, RBM spokesperson Mbane Ngwira said: “We cannot rule out the fact that the tobacco dollars are having an impact on the kwacha. There are some purchases that have been done from the market.

Mbane Ngwira | The Nation Online
Ngwira: There are some purchases

“However, as we also always put it, the stabilisation of the kwacha or increase in foreign exchange reserves is not entirely on account of the tobacco season because there is more than one source [of foreign exchange] that contributes to foreign exchange reserves.”

Since the 2018 Tobacco Marketing Season started in April, the local unit has remained stable at K730 to the dollar.

Besides this, gross official reserves have continued to increase and stood at $661.40 million or 3.16 months of import cover in the week ending May 25 2018, a rise from $658.56 million, about 3.15 months of import cover a week before, according to RBM.

Commenting on the trend, economics statistician Alick Nyasulu said the tobacco  earnings flowing in, should lead to a continued stability of the local currency during the tobacco sales season.

But he said the country should not expect appreciation of the kwacha, since the market has become adaptive to the fact that tobacco revenues are not good enough to stabilise the currency.

Catholic University economics lecturer, Gilbert Kachamba, in an interview said the importance of tobacco as a foreign exchange earner cannot be overlooked.

Last year, the country earned  $212 million (about K155 billion) from tobacco, a drop from the previous year’s $276.4 million (K202 million) due to poor prices. n

Previous Post

Wizards, BT Utd yet to register for South league

Next Post

Parastatals To parasites

Related Posts

Kapito: Commit 
to the plan
Business News

New strategy targets Lower digital costs

March 2, 2021
GRAPH | The Nation Online
Business News

Treasury fast-tracks debt retirement fund-roll out

March 2, 2021
Partridge: PR practitioners are key
Business News

PR practitioners key to corporate growth—Partridge

March 2, 2021
Next Post
Alimi adagulitsa kale chimanga kwa mavenda

Parastatals To parasites

Opinions and Columns

My Turn

Tackling global slowdowns

March 1, 2021
People’s Tribunal

Burglary at the hill

February 28, 2021
Search Within

Perseverance landed, is alive and well

February 28, 2021
Emily Mkamanga

Tasting your own salt in politics

February 28, 2021

Trending Stories

  • Under probe: The Reserve Bank building in Mzuzu

    Exclusive: RBM’s Mzuzu branch payment mess exposed

    0 shares
    Share 0 Tweet 0
  • K5bn Sunbird Waterfront hotel opens May

    0 shares
    Share 0 Tweet 0
  • Lhomwe chiefs divided on paramount chief

    0 shares
    Share 0 Tweet 0
  • Inside Chisale’s seized property

    0 shares
    Share 0 Tweet 0
  • Experts fault IFMIS roll-out delays

    0 shares
    Share 0 Tweet 0
  • Values
  • Our Philosophy
  • Editorial policy
  • Advertising Policy
  • Code of Conduct
  • Plagiarism disclaimer
  • Disclaimer
  • Privacy Policy
  • Terms of use

© 2021 Nation Publications Limited. All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation

© 2020 Nation Publications Limited. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.