RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI REPORT RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI AND RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI ACCOUNTS RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI FOR THE YEAR ENDED 31 DECEMBER 2013 RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RESERVE BANK OF MALAWI RBM Report and Accounts 2013 Chairmann MMr CharlesChuka C Governor MeMember Member Meember Ms Megg Kajiyanike Dr.D Naomi Nggwira Dr. Grannt Kabango Deputyy Governor, DeputyD Goverrnor, Deputy Governor, Opeerations Economiccs Supeervision Member MMember MMember Mr.M Ted Sitimawina m Dr. Patriick Kambewwa Mr Newbyby Kumwembbe Seccretary forEconomic E Secretary tto the Treasuury Plannning & Devvelopment Member MMember Membber Member Mr. Patricee Nkhono Mr. Dixiies Kambauwwa Mr. David Grimes MrsBetty B Mahukka Report and Accounts 2013 RBM MISSION STATEMENT To ensure price and financial stability through the formulation and implementation of sound monetary and macro-prudential policies that are consistent with agreed national strategies. i RBM Report and Accounts 2013 EXECUTIVE MANAGEMENT Chairmann MrM CharlesChuka C Governor MemberMe Member Meember Ms Megg Kajiyanike DDr. Naomi Nggwira Dr. Grannt Kabango Deputyy Governor, DDeputy Goverrnor, Deputy Governor, Opeerations Economiccs Supeervision ii Report and Accounts 2013 RBM HEADS OF DEPARTMENTS Chando, P. Head of Procurement and Stores Chinkono, C. Director, Human Resources Chitsonga, D. Director, Information and Communication Technology Chokhotho, R. Director, Internal Audit Gundani, J. (Mrs) Director, Exchange Control Kanyanda, G. Director, Branch Management Kasomphe, S. Chief of Protective Services Kumbatira, M (Mrs) Director, Banking and Currency Management Malitoni, S. General Counsel and Bank Secretary Matambo, W. Director, St rategy and Risk Management Mathanga, H. Director, Financial Markets Mdwazika, F. Director ,National Payment System Mhango, P. Director, Administration Mkulichi, N. Director, Pensions and Insurance Supervision Mlelemba, E. Director, Bank Supervision Mseka, C. (Mrs) Director, Accounting and Finance Mzoma, H. Acting Director, Micro Finance and Capital Markets Supervision Ngwira, M. Director, Governor’s Office and Public relations Stambuli, M.(Mrs) Head of Oracle Business Support Centre Tseka, R. Director, Research and Statistics iii RBM Report and Accounts 2013 GENERAL NOTES Separate items will not always sum to corresponding totals, owing to the rounding off of figures. The following symbols should be noted in the text and statistical annex tables. .. Means not available - Means nil or less than one half of the significant digit shown * Means preliminary figures + Means revised figures Copies of the Report and Accounts may be obtained without charge from: The Director of Research and Statistics, Reserve Bank of Malawi, P.O Box 30063, Capital City, Lilongwe 3, Malawi. Phone: (265)-1-770600 Fax: (265)-1-770593. E-mail: [email protected] Any opinion expressed in this document should be regarded as solely that of the Reserve Bank of Malawi. The Bank wishes to express its appreciation of the co-operation and assistance from the Ministry of Finance, the National Statistical Office, financial, commercial and industrial organisations in supplying data and background material. iv Report and Accounts 2013 RBM TABLE OF CONTENTS SECTION ONE 1.0 OPERATIONS AND PERFOMANCE OF THE RESERVE BANK OF MALAWI ...1 1.1 Staffing and Staff Complement................................................................................1 1.2 Appointments ...........................................................................................................1 1.3 Capacity Building ....................................................................................................1 2.0 IMPLEMENTATION OF MONETARY POLICY DURING THE YEAR 2013 ………………………………………………………………………......….........2 3.0 DEVELOPMENTS IN THE GLOBAL ECONOMY....................................................4 3.1 International Economic Outlook..............................................................................4 3.2 Growth in Advanced Economies .............................................................................4 3.3 Emerging and Developing Economies.....................................................................5 3.3 The Sub-Saharan Countries .....................................................................................5 4.0 DEVELOPMENTS IN THE MALAWIAN ECONOMY .............................................7 4.1 Production .................................................................................................................7 4.1.1 Agriculture...................................................................................... .7 4.1.2 Mining and Quarrying.................................................................... .8 4.1.3 Manufacturing ................................................................................ .8 4.1.4 Construction ................................................................................... .8 4.1.6 Financial and Insurance Services ................................................... .8 4.1.7 Accommodation and Food Services............................................... .9 4.1.8 Wholesale and Retail Trade ........................................................... .9 4.1.9 Transportation and Storage Services.............................................. .9 4.1.10 Electricity, Gas and Water............................................................ .9 4.2 Domestic Consumer Inflation ..................................................................................9 4.3 Balance of payments ...............................................................................................10 4.3.1 Current and Capital Account Balances .......................................... 10 4.3.2 Exchange Rate Movements.......................................................... 10 4.4 Money and Credit................................................................................................... 11 4.4.1 Broad Money and its Components ................................................. 11 4.4.2 Counterparts to Broad Money ........................................................ 11 4.4.3 Net Domestic Credit....................................................................... 11 4.4.6 Money Market ................................................................................ 14 4.4.6.3 Open Market Operations ...........................................................