Govt against using foreign currencies in local transactions

Malawi Government through Ministry of Finance has warned against using foreign currencies in local transactions saying the practise is illegal.

According to a statement signed by Secretary to Treasury Ben Botolo, the act is against the laws of the country that states that Malawi kwacha should be used in local transactions unless otherwise.

“It has come to the attention of Malawi Government authorities that some individuals and cooperate bodies are quoting or accepting quotation of prices for payment in foreign currency for goods and services rendered in Malawi, rather than using the Malawi Kwacha which is legal tender in Malawi,” says the statement.

In the country, some house owners claim that they only receive rent in United States dollars while school fees for some schools are also quoted in US dollars. But Botolo says the practise is illegal.

“I wish to underline that, this is a malpractice that contravenes the Exchange Control (Use of Foreign Currency in Local transactions) Regulations of 2006 under the Exchange Control Act (Cap. 45:01) that expressly prohibits the use of foreign currency in local transactions except upon permission from Ministry of Finance upon furnishing him with valid reasons for such an arrangement,” the statement says.

Government has since asked all the stakeholders to strictly abide to the Regulations and the Provisions of the Exchange Control Act at all times.