Update: The Malawian government has dismissed recent speculation that an impending devaluation of the Kwacha is part of ongoing negotiations with the International Monetary Fund (IMF). Responding to rumours following a recent IMF visit, Information and Communications Technology Minister Dr. Shadric Namalomba stated on October 8 that currency devaluation is "not an item on the agenda," according to Nyasa Times. The speculation arose after an IMF delegation, led by Mission Chief Justin Tyson, concluded a two-week visit to Lilongwe on October 6. While no final Extended Credit Facility agreement was signed, the IMF noted significant progress in Malawi's fiscal consolidation, fuel pricing reforms, and revenue collection under the National Economic Recovery Plan, AfricaBrief reports.
In a separate development addressing the country's persistent foreign exchange shortages, researchers from the Harvard Kennedy School Growth Lab have urged Malawi to overhaul its currency policies. According to Nation Online, a newly released study titled 'Resolving Malawi's binding foreign exchange constraints' advises authorities to adopt a managed float or rule-based crawl to align the Kwacha with market realities. The researchers warned that restricting foreign exchange at the official rate has driven demand into informal channels and widened the parallel market premium. The study further highlighted that despite generating approximately $1 billion annually through official channels, the foreign exchange available per person in Malawi has fallen to less than $150 since 2020.