Africa-Press – Malawi. The Reserve Bank of Malawi (RBM) has assured Malawians that it has no plans to devalue the Malawi Kwacha in the short to medium term, dismissing speculation largely coming from opposition quarters.
RBM Governor, Dr. Mafuta Mwale, said government has lined up solid measures aimed at fighting inflation without resorting to devaluation.
In the short term, Mwale said the Bank will support maize importation and flood the market, which will in turn lower prices and ease inflationary pressures.
With respect to the foreign exchange market, Mwale stressed that the Central Bank is focusing on tackling forex availability challenges from the supply side rather than devaluation.
“Malawi is not here to count losses and feel sorry about ourselves but celebrate our untold success and the spirit in us to keep on fighting for a better Malawi. If you are in a hole, stop digging, for you will not get out. People should stop spreading fake news,” he said.
He added that the Bank is committed to supporting the private sector to boost production and exports, thereby generating a sustainable flow of forex.
Mwale emphasized that RBM currently has no plan to devalue the Malawi Kwacha, as alternative initiatives have been devised to stabilize the economy. Among the immediate measures, government through the National Food Reserve Agency (NFRA) is importing maize to counter artificial scarcity caused by hoarding.
At the same time, RBM is rolling out initiatives to support private sector businesses to produce and export more, thereby increasing forex inflows.
According to the Bank, these measures are expected to maintain the positive inflation trend, which has shown a four-month consecutive decline from 30.7 percent to 27.1 percent in June 2025, before a slight rise to 27.3 percent in July 2025. Over the past year, inflation has dropped by 6.6 percentage points from a high of 33.9 percent in August 2024.
Currently, food prices continue to face upward pressure due to artificial shortages created by traders hoarding maize. However, relief is expected as farmers under the Mega Farms initiative have started selling produce to NFRA, with those supported by NEEF also set to join.
Mwale also revealed that government is importing affordable maize from neighboring countries, with NFRA in talks to expedite the process. He said RBM stands ready to support this intervention to arrest further price escalations.
Additionally, government has rolled out strong measures to address cement shortages.
Meanwhile, economist Dr. Ben Dzolowere has commended Mwale and RBM’s approach in managing inflation. He also reminded policymakers of Adam Smith’s principle of the price–supply–demand chain, observing that Malawi’s inflationary pressure persists because “we don’t produce, and everything is imported, which puts pressure on our scarce dollar.”
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