Don’t exploit forex—Malawi Watch
A human rights activist has asked financial institutions not to exploit the liberalised foreign exchange market at a time Malawi is going through tough economic situations.
But Reserve Bank of Malawi (RBM) spokesperson Mbane Ngwira said yesterday it monitors the market daily and constantly to ensure that the financial institutions operate within a set code of conduct.
Malawi Watch executive director Billy Banda has challenged government to provide solutions to the skyrocketing US dollar, arguing the Capital Hill cashgate and donor aid freeze is connected to the performance of the kwacha on the market.
Banda, while commending government for suspending internal and external travels by its officers, including President Joyce Banda, said there was more government could do to protect Malawians.
“We cannot afford this again. This is connected to the Capital Hill cash-gate because the looters were reportedly changing the stolen money into US dollars. Apart from recovering some foreign currencies from suspects, what else is government doing?” Banda queried.
The kwacha, which was selling at K340 to a dollar in June this year, has plunged to over K415 and experts have warned it will depreciate further until the end of the lean period.
As of yesterday, Malawi Savings Bank (MSB) was selling the dollar at as higher as K421 CDH Investment Bank, First Merchant Bank (FMB), Indebank at K418 and National Bank of Malawi (NBM) K418, and Ned Bank at K417.
Banda said much as the foreign exchange market was liberalised, it was imperative for Reserve Bank of Malawi (RBM) to ensure that financial institutions do not collude to exploit the market.
The RBM spokesperson said there is a monitoring mechanism to ensure that the market is not exploited, explaining that the bank and other financial institutions report to the central bank every morning on offers they put on the market and during the day if there is a change.
“There is also code of conduct on how they are supposed to conduct themselves as banks,” said Ngwira.
