Stop conducting foreign currency transactions, Reserve Bank of Malawi warns unauthorized operators

The Reserve Bank of Malawi (RBM) has warned business operators, including tourist operators who are unauthorized , to stop conducting foreign currency transactions, saying failure to do so, will attract serious sanctions from the central bank.

Kabambe: Sternly warn all unlicensed operators to stop conducting foreign currency transactions

RBM has also advised licensed operators to always comply with all requirements and laid down guidelines and that failure to do so would attract serious sanctions from the Bank.

According to Section 3 of the Exchange Control Act, it is illegal to deal in foreign currency without a license issued by the Bank.

RBM Governor Dalitso Kabambe noted that some individuals or entities, including tourist operators are transacting in foreign currency and they don’t have the requisite license to deal in foreign currency.

“By doing so, they are not only violating the said law, but they are also exposing themselves to ligation, if proved guilty. The Bank therefore wishes to sternly warn all unlicensed operators to stop conducting foreign currency transactions forthwith and urge them to apply for a license from the Bank to enable them transact in foreign currency within the provisions of the underlying licensing guidelines.

“The current licensing regime only recognizes authorized dealer banks, foreign exchange bureaux, tourist operators and money transfer agents as eligible entities to conduct foreign exchange transactions, ” said Kabambe.

He said in accordance with Section of 3 of the Act, the Bank will sanction anyone dealing illegally in foreign currency transactions.

Meanwhile, the central bank has maintained the policy rate at 13.5 percent.  The decision made during a  a two-day meeting of the Monetary Policy Committee in Lilongwe. Next meeting will take place in January next year.

“In arriving at this decision,  the Committee observed that although rising maize prices may marginally push up headline inflation in the near term, this elevation is deemed temporary and does not pose a risk to the medium-term inflation objective of five percent by 2021.

“The economy has displayed notable resilience despite the adverse effects of cyclone idai and the weak performance of tobacco exports in 2019. Real Gross Domestic Product (GDP)  continues to recover and is projected to grow by five percent in 2019,” said Kabambe.

The Central Bank Governor said inflation rate remains in single digits and was recorded at 9.3 percent in the third quarter of 2019 with the exchange rate trading around K740 to the dollar.

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4 years ago

If you want to witness forex transactions just go to NEDBANK you will find same people using deferent passports to purchase forex which then is sold to indians. The forex transacted ranges from USD5,000 to USD 20,000. It is easy to catch these people becuase the roam all over where NEDBank has branches andthey seem to be known by bankers and they are always given premium attention

4 years ago

Stop yapping Mr. Dalitso Kabambe. You know the perpetrators, mainly Indians, who often are given support from above. Just pounce on them. You have my support.

Justice Usiwa
Justice Usiwa
4 years ago

Inform people who qualifies. To open forex bureau.

Mpale Weniweni
Mpale Weniweni
4 years ago

Mr RBM Governor, is your warning enough and on a serious note or you just want to hoodwink IMF and World Bank regarding strict foreign currency policy adherence transactions by the bank. Your warning is just the same as telling people to practice sex yet there is no reduction in HIV/AIDS transmission.

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