The Reserve Bank of Malawi (RBM) has suspended the sale of cash export proceeds to foreign exchange bureaux with immediate effect.
This means people who get foreign currency directly from buyers cannot exchange it with Kwachas in the bureaux.
The bank has indicated, in a press release, that it has arrived at the decision after noting that there is a proliferation of unauthentic foreign exchange bureau receipts.
“The bank, therefore, wishes to advise exporters who receive export proceeds in foreign currency cash to either deposit the funds in their foreign currency denominated accounts or exchange the same with commercial banks,” the statement reads.
The statement further indicates that, effective October 1 2023, SWIFT statements, bank statements and bank deposit slips shall be the only acceptable documents for reconciliation of export declarations made under the electronic CD1 form.
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RBM spokesperson Mark Lungu said, due to fake receipts, export proceeds were not finding their way into the formal market thereby contributing to shortage of foreign exchange on the market.
He said the new measure is meant to address the problem,
Meanwhile, Financial Market Dealers Association President Leslie Fatch has welcomed the move, indicating that the money should indeed be finding its way into the market.
“It might be true that people are opting for forex bureaux other than banks because of the [exchange] rate but the problem here is not about the rate but fake receipts. As such, the move is welcome because it will make it possible for export proceeds to flow down into the real market,” Fatch said.
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Malawi is struggling with the problem of foreign exchange scarcity, which has affected importation of key commodities.
