Business confidence drives import cover | The Times Group

Business confidence drives import cover | The Times Group:



Business confidence drives import cover

Posted By: Chimwemwe Mangazi on: January 03, 2018 In: Business No Comments

Reserve Bank of Malawi Governor, Dalitso Kabambe, has attributed the improved import cover in

the past couple of months to confidence the private sector has in the economy.

Import cover is the amount of foreign exchange that the country maintains for importation of

strategic goods and commodities. Import cover is expressed in months and one common rule of

thumb is that reserves that can cover three months' worth of imports are adequate.

Kabambe said, in the past, the business community used to hold on to foreign currency due to

uncertainty over the performance of the kwacha, adding that following the local unit's stability over

the past year, the community is releasing forex.



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