The study looked at what affects the exchange rates in Malawi and South Africa. They found that the openness of the countries' economies has a big impact on the exchange rates. In Malawi, government spending affects the exchange rate negatively, while in South Africa it affects it positively. Excess domestic credit causes the exchange rate to go up in both countries. Policies that reduce trade restrictions make the exchange rate go down. The study suggests that controlling the amount of money in the economy and promoting trade can help stabilize exchange rates in these countries.