FINANCIAL IMPACT OF THE CORONAVIRUS ON INTERNATIONAL BUSINESS IN MALAWI: The Case Study of Private and Public Organisations

Description

The COVID-19 crisis has brought shock to the global economy with far reaching and uncertain ramifications. Malawi as part of the global market is highly exposed to the impact of the coronavirus. This paper analyses the financial impact of coronavirus on international business in Malawi from January to June, 2020. It examines exchange rate movements due to Coronavirus, assesses the impact of coronavirus to international trade flows, and analyses the role of Central Bank on managing coronavirus crisis. The study has established that there is a correlation between coronavirus and exchange rate movement which had further impact on the inflation, balance of payment, economic growth and unemployment. Secondly, it has also established a correlation between coronavirus and international trade flows. Thirdly, it established that Reserve Bank of Malawi played a crucial role to maintain financial stability as it implemented various policy measures.