(NYASATIMES) Malawi still in forex scarcity

Malawi still in forex scarcity
Nyasa Times
27 December, 2008 04:35:00

Malawi continues to face an acute shortage of foreign currency, Nyasa Times has learnt commercial banks and money exchange bureaues.

A commercial bank manager told Nyasa Times that is US Dollar and British Pound liquidity shortage for local banks.

Reserve Bank of Malawi (RBM) recently announced the introduction of an electronic system for tracking export proceeds known as the Foreign Exchange Statistical Database System (FESDS) to help amass foreign exchange.

In a statement issued by the central bank, it said the system which was introduced October 27 will facilitate speedy data capture and interchange between exporters, banks, Malawi Revenue Authority (MRA) and the central bank.

"Exchange Control (Forex Bureaux and Foreign Exchange Fixing Sessions regulations, 1994 issued under the Exchange Control Act (Cap. 45:01), 1984 requires that export proceeds be repatriated to Malawi. The proceeds are to be received in Malawi within 180 days of exportation,” RBM deputy governor Mary Nkosi said.

“Accordingly, exporters are required to advise their customers to quote the CD1 form unique reference number when remitting export proceeds to enable ADBs identify the proceeds with a particular CD1 form for purposes of reconciliation," the deputy central bank governor said in the statement.

Bank officials said the introduction of the new system followed the shortage of foreign currency but the situation remains “dire”.