The African Development Bank (AfDB) has foreseen a 5% depreciation of the Malawi Kwacha, because of expected large current account deficits.

AfDB 2019 Southern African Regional Economic Outlook said that Malawi’s positive outlook will depend on improvements in rain fed agriculture, macroeconomic management and fundamentals, recovery in global demand and commodity prices, and reforms enhancing foreign direct investment.

Currently Malawi’s currency is been expecting a 4.6% growth as the Reserve Bank of Malawi (RBM) disagreed with the prediction, stating that it remains upbeat that the Malawi Kwacha is stable and will be so, because Treasury has assured that expenditure towards elections will be within the budgeted figures.

During the fall of the Kwacha in May and June, RBM Governor Dalitso Kabambe was calm, describing the situation as a blip, saying that the the local currency going to stabilise in the short term.