By Benadetta Chiwanda Mia:
The High Court in Lilongwe will on Saturday hear a case in which Bankers Association of Malawi (Bam) is challenging new exchange control regulations introduced by Reserve Bank of Malawi (RBM) last month.
Bam’s lawyer Kalekeni Kaphale confirmed on Tuesday that the matter will be heard on January 18.
The bankers’ body is contesting regulations gazetted on December 13, 2024, which introduced strict controls on foreign currency accounts for public and private institutions.
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Bam Chief Executive Officer Lyness Nkungula declined to comment on the case, saying it is in court.
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Under the new regulations, public institutions must open foreign currency accounts with RBM and convert 80 percent of foreign funding into local currency.
The rules, known as Holding Foreign Currency Denominated Accounts and Mandatory Conversion of Foreign Currency Receipts Regulations 2024, also require non-governmental organisations to receive foreign funding through authorised dealer banks.
The central bank has also restricted diplomatic offices to foreign currency withdrawals of $15,000 per month while ambassadors and consuls are limited to $3,000 monthly withdrawals.
The Office of the Attorney General is opposing Bam’s application in court.
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The regulations come amid persistent foreign exchange shortages in the country.
