By Linda Kwanjana
The Reserve Bank of Malawi (RBM) on Friday spelt out ernomous measures aimed at dealing with black market which leads to forex drainage.
Speaking at the press conference in Lilongwe RBM Governor Dr Mafuta Mwale observed that black market is the main driver of price escalation in the country.
Dr Mwale said what happens is that Business people buy products outside the country using Dollar exchanged on the black market.
“You cannot deny on the effects of black market the effects are huge , Malawi is experiencing shortage of liquidity otherwise we could have been buying everything like medicine , fertilizer but black market is denying us all these,” he said.
According to the Governor the first measure in deaung with black market is that RBM has changed licences regime whereby RBM will now be renewing licences annually and that all licences which banks and bureaus are operating ceases in June this year.Â
“We are asking all banks , Bureaus and all other stakeholders dealing in forex to start applying now,” he said.
He said that all institutions that do handle Forex in Malawi to have very good teams with integrity, so that the resources that are coming to our shores are really taken care of for the good of everybody.
According to the Governor, the Bank has introduced a Telegraphic Transfer Copy where by any transfer happening will sent TT Copies to RBM and MRA.
“Without this copy , MRA will not clear the goods with MRA or else there will be penalties,” he said.
“TC copies is an approval, an assurance that somebody has paid for imports that come to our show using legitimate payment systems, and those are within the banks, or indeed outside banks, if either lines of credit,” he said.
The Governor said this will help to lessen demand happening at black market.
The RBM will introduce a toll free number where citizens will be reporting malpractices happening financially.
There shall be a remuneration on everyone reporting these malpractices regarding black market. The Governor has since assured the public that they have assembled a great ICT team who are working tirelessly on the issue TT Copy.
