Businesses and consumers have expressed disapproval with a new foreign exchange measure introduced by commercial banks to remove pre-approved forex limits on customers’ Visa cards effective on Monday.
In an internal memo dated January 3 2025, National Bank of Malawi plc head of treasury and investment banking division Harry Mukaka said the new guidelines have been introduced to facilitate the smooth processing of foreign exchange transactions.
Reads the memo in part: “It is imperative that all relevant staff members are informed of these changes and adhere to the updated procedures.”
Bankers Association of Malawi (BAM) president Phillip Madinga, who is also Standard Bank pl chief executive, referred the matter to BAM executive director Lyness Nkungula, who was yet to respond to our questionnaire on the rationale behind this measure and whether all banks have done the same.
But Crossborder Traders Association of Malawi president Symon Yohane described the guidelines as unfair.
“We are not happy with this directive because as traders, sometimes receive orders to supply at a short notice even in government departments,” he said.
National Association of Business Women executive director Babra Banda said: “On face value, removal of pre-approved limits should mean this is an open cheque on foreign currency expenditure, but in the current context, this is a control mechanism which will further fuel black market transactions.”
Consumers Association of Malawi executive director John Kapito said the guidelines are retrogressive, considering that Malawi opened up to e-markets that allow one to import and do international business by using a card and travel with less restrictions.
