The Malawi kwacha has depreciated against both the South African rand and the British pound, prompting warnings of imported inflation, according to Nation Online. Reserve Bank of Malawi market data shows the local currency has weakened by 2.89 percent against the rand to trade at K108.50, and dropped 2.39 percent against the pound to reach K2,346.60 since the start of the second half of the year. While the kwacha has held steady against the US dollar at K1,751, investment advisory firm Nico Asset Managers warned that the depreciation against key trading partners could increase import costs and place further pressure on businesses and consumers.
In the banking sector, a new Reserve Bank of Malawi Financial Stability Report revealed that Malawian banks are holding substantial surplus liquidity, with daily average excess reserves rising to K351.5 billion during the first half of the year, Nation Online reports. Despite this liquidity, financial intermediation remains low, with less than 40 percent of deposits being converted into loans. The central bank attributed the low loan-to-deposit ratio to banks maintaining tight lending standards and risk aversion, which limits credit access for small and medium enterprises despite strong market demand.
Update: Officials at the 3rd Tanzania-Malawi Business and Investment Forum in Dar es Salaam have urged both countries to translate their growing trade volumes into joint manufacturing and value-added investments, according to the Tanzania Daily News. The forum concluded this week with participation from institutions including the National Bank of Malawi. During the meetings, stakeholders highlighted expanding bilateral trade, noting that Tanzanian exports to Malawi reached $89.47 million in 2025.