Reserve Bank of Malawi (RBM) Governor MacDonald Mafuta Mwale has said market compliance with the recently enacted Foreign Exchange Act of 2025 remains low.
The law, which ensures transparency in the foreign exchange market, came into effect in May 2025 after being assented to by President Lazarus Chakwera.
In an interview, Mwale acknowledged that adherence to the new foreign exchange regulations had been underwhelming.
However, he expressed optimism that the new law—now giving RBM enforcement authority— would enable the central bank to ensure better adherence going forward.
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“I am strongly assuring you that there will be adherence. As an economy, everyone has to play the game by the rules,” Mwale said.
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The Act, passed by Parliament in April 2025, repealed the Exchange Control Act of 1984, bringing Malawi’s legal framework for foreign exchange management in line with international standards.
It aims to enhance transparency, strengthen monetary policy enforcement and curb illicit financial flows.
The legislation significantly expands the enforcement powers of the RBM while the Minister of Finance retains policy oversight.
Financial Dealers Association of Malawi (Fimda) President Leslie Fatch said interested parties were yet to be formally notified on the Act’s effect.
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Fatch described the Act as a timely and necessary step in addressing modern challenges in foreign exchange management.
“The beauty about the Act is it’s now contemporary. We are replacing the old Exchange Control Act, which was a bit outdated because it’s been there for quite some time. So, the new Act should be addressing the contemporary challenges,” Fatch said.
He added that Fimda and other financial sector players welcomed the initiative and looked forward to its full implementation.
“The market has moved. So, it’s high time that the Act needs to be updated and we welcome the initiatives taken by the central bank and the relevant authorities,” he said.
