By Chisomo Phiri
The recent crackdown on illegal foreign exchange traders by law enforcement agencies has been cited as a key factor in the depreciation of the US dollar against the Malawi kwacha on the black market.
This is according to economic expert Edward Masoambeta.
Masoambeta notes that the crackdown has led to a decrease in illegal trading activities, resulting in a more stable flow of foreign exchange.
However, he suggests that removing restrictions on foreign exchange could further improve accessibility in banks.
In a related development, Reserve Bank of Malawi(RBM ) spokesperson Boston Maliketi Banda has announced that the government will soon unveil measures aimed at ensuring a sustained availability of foreign exchange in the country.
The value of the US dollar on the black market has seen a significant decline over the past two weeks, dropping from over K5,200 to K3,000 per dollar.
The development is seen as a positive sign for the Malawi’s economy, and experts are hopeful that the government’s measures will help maintain stability in the foreign exchange market.
