Malawians travelling and doing business across the country’s borders are continuing to complain of crippling forex shortages, with banks accused of being unwilling to exchange kwacha for dollars – despite fresh figures showing the country’s foreign exchange reserves have actually improved.
According to the latest bulletin from the Economics Association of Malawi (ECAMA), the nation’s foreign exchange reserves climbed by $104.5 million (K182.9 billion) between September last year and June this year.
The reserves stood at $511.80 million (K896.1 billion) as of September 2025, before rising to $616.30 million (K1 trillion) by June 2026, the report shows.
Despite the improvement, the relief does not appear to have filtered through to ordinary Malawians and cross-border traders, many of whom say banks remain reluctant to release dollars for legitimate transactions – forcing many to turn to the parallel market at inflated rates.
The recovery in reserves follows a torrid two years for Malawi’s foreign currency position.
ECAMA’s bulletin shows reserves had plunged dramatically between 2023 and September 2025, falling from $675.59 million (K1.1 trillion) in 2023 to just $511.80 million (K896.1 billion) by September last year – a slump that fuelled the very forex shortages traders are still grappling with today.
The persistent gap between official reserve figures and what is actually available to ordinary consumers at commercial banks has long been a source of frustration in Malawi, with critics accusing financial institutions of hoarding dollars or prioritising select clients over everyday forex demand.
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