The article explores how different factors affect the value of the Malawi Kwacha since the foreign exchange market was opened up in 1994. By looking at things like interest rates, current account balance, and external flows, the researchers found that higher interest rates attract private capital, leading to a stronger currency. On the other hand, a weaker current account and reduced capital flows can cause the currency to depreciate. Changes in the price difference between domestic and foreign goods also impact the currency's value. Overall, the study suggests that government policies, like improving infrastructure and managing external funds, play a crucial role in maintaining a stable exchange rate for the Malawi Kwacha.