Wednesday, April 14, 2021
  • About Us
  • ImagiNATION
  • Adverts
  • Rate Card
  • Contact Us
The Nation Online
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
No Result
View All Result
Home Business Business News

Banks compete for tobacco forex

by Orama Chiphwanya
01/06/2020
in Business News
2 min read
0
Share on FacebookShare on TwitterShare on WhatsAppShare on LinkedinLinkedinShare via Email

Commercial banks in the country are competing to buy foreign exchange (forex) earnings from tobacco, a development Financial Markets Dealers Association (Fimda) says is normal.

Reserve Bank of Malawi (RBM) spokesperson Mbane Ngwira in an interview on Saturday said RBM was not buying from the market while at the same time, buying rates have been varying from one bank to another despite a stable selling rate.

RelatedHeadlines

Pre-budget dialogue draws mixed views

Nasfam tips govt on AIP execution, future

Teveta courts industry on reforms, job market needs

He said: “When you receive forex, you are obliged to surrender 40 percent to the bank and can keep 60 percent in the foreign currency denominated accounts.

“If there’s anything remaining, banks sell to RBM and it adds on reserves.”

Hamisi | The Nation Online
Hamisi: It’s not specific to this year

While selling rates have remained unchanged at around K745 to the dollar, authorised dealer banks (ADBs) are buying a dollar at between K729 and K732.

Malawi experiences significant seasonal volatility in its forex inflows, with earnings from the key tobacco export crop concentrated during the March to August period.

In contrast, key import requirements, such as fertiliser procured for the Farm Input Subsidy Programme are sourced during October-December.

This leads to a cyclical pattern of upward pressure on the kwacha during the tobacco earnings season, followed by downward pressure during the lean season.

Fimda president Patricia Hamisi yesterday described the development as a normal strategy among banks.

She said: “Banks indeed compete for tobacco forex mainly to attract farmers to bank with them in the next season.

“Tobacco dollars are the surest source a bank can have so the competition is there indeed and this is not out of the ordinary or specific to this year.”

Available figures provided by AHL Group indicate that after five weeks of sales, the country has raked in $39.4 million (about K29 billion) from 25.8 million kilogrammes (kg) of all types of tobacco sold at an average price of $1.53 (about K1 130) per kg.

Avatar
Orama Chiphwanya
Previous Post

Sectoral wage draws Mixed reactions

Next Post

Tearful homecomming

Related Posts

Mlusu: Government has commenced payment
Business News

Pre-budget dialogue draws mixed views

April 13, 2021
agriculture inputs | The Nation Online
Business News

Nasfam tips govt on AIP execution, future

April 13, 2021
Business News

Teveta courts industry on reforms, job market needs

April 12, 2021
Next Post
Umali | The Nation Online

Tearful homecomming

Opinions and Columns

Political Uncensored

Managing the dream

April 11, 2021
My Thought

Malawi needs fixing, not politicking

April 11, 2021
People’s Tribunal

Don’t intimidate Nyasaland Union of Teachers

April 11, 2021
Emily Mkamanga

Longevity in power no solution

April 11, 2021
https://www.mwnation.com/wp-content/uploads/2021/03/WFP-Afikepo-1-2.pdf https://www.mwnation.com/wp-content/uploads/2021/03/WFP-Afikepo-1-2.pdf https://www.mwnation.com/wp-content/uploads/2021/03/WFP-Afikepo-1-2.pdf

Trending Stories

  • Namadingo | The Nation Online

    Made See needs help—Namadingo

    0 shares
    Share 0 Tweet 0
  • Chakwera wants Malawi Airlines woes resolved

    0 shares
    Share 0 Tweet 0
  • NAO concludes K6.2bn audit report

    0 shares
    Share 0 Tweet 0
  • Billions spent,No safe water

    0 shares
    Share 0 Tweet 0
  • Covid-19 measures relaxed, bars open till late

    0 shares
    Share 0 Tweet 0
  • Values
  • Our Philosophy
  • Editorial policy
  • Advertising Policy
  • Code of Conduct
  • Plagiarism disclaimer
  • Disclaimer
  • Privacy Policy
  • Terms of use

© 2021 Nation Publications Limited. All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation

© 2020 Nation Publications Limited. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.