The Reserve Bank of Malawi has issued a public statement confirming amendments to Malawi’s Exchange Control Regulations that were announced at a 21 March 2025 press conference. The package reduces mandatory foreign currency conversion requirements for exporters and NGOs, proposes moving authorised foreign exchange dealer licences to annual renewal, and introduces a telegraphic transfer (TT) verification requirement to evidence import financing through formal banking channels. For export proceeds and operations of foreign currency-denominated accounts, the mandatory conversion ratio is reduced to 25% from 30%. Manufacturers exporting manufactured goods can be exempted from mandatory conversion if they meet assessment criteria issued by the Reserve Bank of Malawi (RBM), and a waiver can be considered for other exporters that meet RBM’s assessment criteria. For NGO and public sector foreign currency receipts, mandatory conversion will apply when funds are used rather than on receipt, and the conversion rate for NGO foreign currency-denominated accounts is reduced to 50% from 70%. Research funds for public universities will be treated as NGO funds rather than public body funds, and the requirement to convert foreign currency account balances after eight months is removed. Separately, RBM is reviewing the authorised foreign exchange dealer authorisation and licensing regime, proposing one-year tenure for commercial banks and tourist operators (from perpetual) and one-year tenure for foreign exchange bureaus, money transfer operators and money transfer agents (from three years), with existing authorisations set to expire on 30 June 2025 and new authorisations to take effect from 1 July 2025. A new TT verification requirement will require importers to provide bank TT copies, with commercial banks expected to automate transmission of TT copies to RBM and the Malawi Revenue Authority, the Malawi Revenue Authority implementing and enforcing the requirement at import declaration and clearance offices, and the Malawi Police Service Fiscal & Fraud Department supporting surveillance and enforcement. RBM indicated the amendments will be implemented once legislative processes have been finalised and the measures are published in the Government Gazette, and that it is engaging stakeholders in preparation for implementation. It also said it will enact legislation and provide clear guidance to support the planned change to the authorised dealer licensing regime.
Reserve Bank of Malawi 2025-03-25
Reserve Bank of Malawi confirms exchange control amendments lowering mandatory conversion ratios and introducing telegraphic transfer verification for imports
The Reserve Bank of Malawi announced amendments to Exchange Control Regulations, reducing mandatory foreign currency conversion for exporters and NGOs, and proposing annual renewal for foreign exchange dealer licences. Changes include a new telegraphic transfer verification for import financing and adjustments to conversion ratios for foreign currency accounts. Implementation will follow legislative finalization and publication in the Government Gazette, with stakeholder engagement underway.