Search

Focuses on the improvement of the gross official reserves of the Reserve Bank of Malawi in Malawi. Assessment of the economic indicators detailing the improvement of the import cover of the banking sector; Impact of the food inflation to the economy.

The article reports on the effect of the global financial crisis on the production and export of tobacco, the chief foreign exchange earner of Malawi. The crisis will affect the export price of tobacco which can become $1.5 per kilogram compared to its original price of $2.5 per kilogram. Bingu wa Mutharika, the country's Minister of Agriculture reacted that Malawi tobacco should not be sold for $1.5 per kilogram. The industry employed more that 80 percent of Malawians and 30 percent of the country's gross domestic product (GDP) is achieved from tobacco.

The article reports on the review of the International Monetary Fund (IMF) on the economic performance of Malawi under a three-year Poverty Reduction and Growth Facility (PRGF) arrangement. The review enables the release of Special Drawing Right (SDR) worth of US$18.1 million for Malawi. It also brings Malawi's total expenses under the arrangement to SDR worth of about US$52.9 million. The review also states that Malawi's three-year PRGF arrangement was approved on August 5, 2005 to support the economic program of its government for 2005 to 2007.