Malawi: Financial Market Dealers Association has advised the Reserve Bank of Malawi to latch Fissures in the Forex Market

By Abdul Rahman Bangura–

NEW AFRICA DAILY NEWS (NADN) Freetown, Sierra Leone– Reserve Bank of Malawi (RBM) notices stopping the sale of cash export profit to foreign exchange bureaux, virtually banning people who get foreign currency directly from exporters from swapping it with kwachas in the bureaux.

The Central Bank must protect the forex market and foster responsibility in the collection of forex. The Association’s President – Leslie Latch noted.

“Such a decision helps to close some of the loopholes on the repatriation of export proceeds which will now be channeled through wire transfers, thereby ensuring the country receives proceeds from the export of goods and services,” he let out.

RBM re-introduced the customs acknowledgment forms for declaration of exports to monitor forex floats on May 17th, 2023 to assure that all export revenue repatriated into Malawi was issued in a statement made on September 21st, 2023, RBM said it reported that there is a resumed addition 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 announcement further suggests that effective immediately October 1st, 2023, Society for Worldwide Interbank Financial Telecommunications (Swift) statements, bank statements, and bank deposit slips shall be the only acceptable documents for the reconciliation of export declarations made under the electronic CD1 form.

RBM spokesperson – Mark Lungu spoke out on Thursday, September 21st, 2023 some bureau receipts, which were being presented as proof of declaration of export proceeds, were fake.

“This means that export proceeds were not finding their way into the formal market, thereby contributing to a shortage of foreign exchange on the market,” he noted.

For New Africa Daily News Abdul Rahman Bangura Reports,  Africa Correspondent