Malawi: Forex bureaus closed down

  1. Posted on Wednesday 5 August 2009 - 09:14
    Sam Banda Junior
    Image of Sam Banda Junior
    Sam Banda Junior, AfricaNews reporter in Blantyre, Malawi
    Malawi's Central Bank has closed down all foreign exchange bureaus which are said to have been operating outside its rules. The move by the Reserve Bank of Malawi (RBM) comes barely a few weeks after its governor Victor Mbewe resigned from his post.
    malawi map
    A visit in the country’s commercial city of Blantyre on Monday found about three top bureaus closed namely Victoria, CLC and Golden.

    According to the Central Bank’s Secretary Samuel Malitoni, the forex bureaus were operating without proper licenses hence their closure. He said the criterion looks at competence, past performance, integrity and capacity.

    The closure is also said to have come following a court ruling recently that allowed RBM to use its rules set in the Exchange Control Regulations of 2007.

    The rules are said to have allowed the southern African country’s Central Bank to set what is known as Fit and Proper Test guidelines used in assessing application by individuals and organizations wanting to run forex bureaus.


    RBM was quoted by a local newspaper as saying that the bureaus would only be reopened after reapplying. However reports say that chances were almost slim to be allowed to operate once more.

    However the closure has irked the Forex bureau dealers who have accused the Central Bank of planning to kick them out of business.

    Forex Bureau Association of Malawi president Nazir Nathvani has assured government that the bureaus would endeavour to respect RBM exchange controls. However, some analysts have said the government should abolish exchange controls to allow investors to bring more foreign exchange in the country.

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