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Charges in foreign currency worry government

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The government has warned players in the business and sector against use of foreign currency to pay or charge for goods and services on the local market.

However, Ministry of Finance spokesperson, Davis Sado, could not mention the companies that have been found quoting or receiving quotations in foreign currency.

Sado said the practice is forbidden by the laws of the country.

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The Exchange Controls Act stipulates that a person, other than the bank, who, except with permission of the minister, buys, borrows, sells, lends or exchanges foreign currency with another person other than the bank is guilty of an offence.

Sado said the ministry is concerned with the number of traders who are indulging in the practice in the country.

“For the ministry to issue such a warning, we have noted that the practice is on the rise so we wanted to remind these traders and companies that it is not accepted in Malawi to trade using any foreign currency; the only legal tender in Malawi is the kwacha,” he said.

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He added that the ministry is finishing investigations on some culprits who will soon face the law once investigations are concluded.

“I cannot tell you the companies or traders we are investigating now but, soon, you will hear that action has been taken against them. We issued this statement to warn others that we may not be investigating now or that we do not know but are doing the same because sometimes these people forget the laws deliberately,” Sado said.

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