Renowned activist Fredrick Billy Malata has called authorities to immediately deal with the forex black market, which is partly affecting the economy in the country.
Malata said it is worrisome to see that the country’s commercial banks run a shortage of forex while black market vendors have a lot of foreign currency.
He said the escalation of illegal forex trading has negatively affected economic activities in the country.
“The increased black markets for the foreign currency in the country has attracted individuals to use them, leaving out commercial banks and hence affecting our economy”, said Malata.
He added that the government is struggling to buy basic commodities from outside the country, including fuel, because of a shortage of forex while black market vendors are freely operating.
He then called the Reserve Bank of Malawi (RBM) to work with security agencies such as fiscal police and intensify operations on the ground to sweep all forex black market traders.
Responding to the call, Reserve Bank of Malawi Spokesperson Dr Mark Lungu said it is illegal to conduct forex business with individuals and companies not licenced by RBM.
Dr. Lungu added that the central bank only recognizes those registered per the RBM Act.
“It is a criminal issue for an individual or a company to conduct forex trading without authorization by RBM”, said Lungu.
He further said RBM expects law enforcers to take action on the matter, saying such transactions have negative impacts on the economy of Malawi since they affect price bearing.
He called on citizens to avoid engaging themselves in such transactions to protect the economy.
Malata further challenged that once such kind of operation by law enforcement agencies is conducted regularly, there will be sanity in forex trading in the country.
Meanwhile, activist Malata sees the possibility of stabilization of forex once the government takes strict measures against illegal trading of forex.
Police are yet to comment on the matter.
Fuel is among other
important goods and services Malawi is struggling to import due to forex shortage.
Forex shortage has affected the importation of fuel, which has resulted in price escalation of basic needs
