The Reserve Bank of Malawi (RBM) has revised the limit on the exportation of the kwacha to monitor the movement of cash as well as promote cross-border trade.
In a statement, RBM Governor Dalisto Kabambe said cross-border traders may now export kwacha equivalent of $5 000 (K3.6 million) for purchasing merchandise across the border with Mozambique, Zambia and Tanzania while travellers may export kwacha of not more than $100 (K73 000) for any other purposes.
He said the kwacha exported for purposes of cross-border trade shall be declared with Malawi Revenue Authority (MRA) and Immigration Department authorities at the point of exit.
The new provision—Exchange Control Circular Number 01/2018—replaces the 2013 Exchange Control Circular Number 03/2013 which did not specify countries to which an equivalent of $5 000 was to be exported to for trading purposes.
In an interview, RBM spokesperson Mbane Ngwira said the move aims at monitoring movement of local currency.
“Earlier, the provision did not specify which countries traders are to use and carry that money to. We have had cases where people have been found with the local currency beyond the required amount but far from the designated countries.
“The emphasis on the development centres not only on promoting cross-border trading, but also movement of the local currency because we know people will still take large sums of money out of the country for other purposes other than the intended ones,” he said.