Standard Bank plc has rolled out a diaspora account to facilitate remittances for Malawians living abroad and wishing to invest back home.
Available in the dollar, euro, South African rand and British pound sterling currencies, the diaspora account is supported with Malawian investment options and carries no monthly fees, according to the bank.
Remittances are monetary transfers sent from migrants to their homes through formal and informal channels.
Standard Bank plc head of consumer and high-net worth Charity Mughogho said the account offers competitive exchange rates and can be opened with a passport by clicking www.standardbank.co.mw/malawi/personal/products-and-services/bank-with-us/bank-accounts/diaspora-account to download and complete the application documents.
She said: “The account comes with the option of either having a Malawi kwacha account or keeping savings in a foreign currency denominated account with four currency options.
“The account carries no management fees with same day delivery of inward telegraphic transfers. It also allows customers to choose between a single or joint account that comes with a debit card which can be activated for use internationally.”
Mughogho said diaspora account holders will be assigned to a dedicated account manager and will not be required to maintain a minimum book balance.
A customer will also enjoy a number of bundled free services such as mobile and Internet banking, e-mail alerts, same-day inward telegraphic transfer settlements and online purchases together with a streamlined account management service.
Remittances to Malawi rose by 55 percent to $217 million (about K180 billion) in 2021, according to the World Bank, a development an economist says helped to raise the welfare of many Malawians.
In its recent analysis for Malawi, the World Bank said remittances are also helping to finance the country’s trade deficit, which stood at $484 million (about K397.84 billion) as at September 31 2021.
In an earlier interview, economic statistician Alick Nyasulu said remittances to Malawi hinge on Reserve Bank of Malawi exchange rate rules, apart from the cost.
He said: “Most of the diaspora see no value in these foreign currency accounts as the rules make it difficult for most of them to access their money in the currency of their account.”
RBM figures show that in 2020, the country received $214.5 million (about K169 billion) in personal remittances, a drop from $265.7 million (about K208 billion) in 2019.
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