As Malawi continues to struggle with high forex prices and liquidity shortages, the Reserve Bank of Malawi (RBM) yesterday announced some measures they have put in place to deal with the black market issue.
The measures include the announcement of changes to the licensing of institutions authorized to trade in foreign exchange, making the licenses renewable annually.
Reserve Bank Governor McDonald Mwale told journalists that if foreign exchange resources were properly accounted for and entered the country as expected, many of these challenges could be mitigated.
According to Mwale, the new licensing system, effective July 1, aims to ensure that all forex traders operate with high integrity and comply with exchange rate regulations.
“We have introduced strict measures to curb illegal forex trading, including a requirement for banks to send electronic copies of telegraphic transfers used for import payments to both the central bank and the Malawi Revenue Authority (MRA),” said Mwale.
Mwale also noted that, as RBM, they know the banks, the accounts, and WhatsApp groups that are selling dollars, euros, and rands, and they will deal with them soon.
He further stated that some people in the diaspora are trading forex in informal markets, and RBM is aware of that syndicate.
“They call Malawians to pay a person in kwacha while they hold the forex outside,” he explained.
The central bank has introduced a toll-free line that people will use to report any information that will lead to possible illegal forex trading.
