Reserve Bank of Malawi Introduces New Measures to Combat Inflation and Boost Economic Growth

The Reserve Bank of Malawi (RBM) has unveiled a series of measures designed to tackle inflation, enhance foreign exchange reserves, and stimulate economic growth in the country.

RBM Governor Dr. McDonald Mafuta Mwale announced these initiatives during a press briefing in Lilongwe on Friday. He disclosed that the central bank will introduce a new licensing framework requiring all banks and foreign exchange bureaus to renew their licenses annually. This move is intended to ensure strict adherence to exchange control regulations.

The new licensing system will come into effect on July 1, 2025, with all current licenses set to expire on June 30, 2025. Dr. Mwale emphasized that this measure aims to promote transparency and integrity among foreign exchange traders.

Furthermore, the central bank has introduced additional steps to curb illegal foreign exchange activities. One key measure targets the misuse of telegraphic transfers for import payments. Under the new rule, traders will be required to submit electronic copies of these transactions to both the RBM and the Malawi Revenue Authority (MRA) for verification.

Dr. Mwale also urged Malawians to report any black market activities, such as illegal exportation of goods, unauthorized forex trading, and mineral smuggling, to the central bank. A dedicated toll-free number, 402, will be operational starting next week to facilitate the reporting of such activities.

These measures collectively aim to strengthen Malawi’s financial system and foster a more stable economic environment.